Calcualte the expected return and volatility of an effecient portoflio where 40% of it is financed via a short position in the riskfree asset

My question is from an exam, i know the answer is suppse to be:

The question is as following:

It is question 4/4

Other information from the total assignment has been

Aswell as some calculations we made:

 
 
 

Transcribed Image Text:

Facit: E[Rp] =0,1938; σ (Rp) = 0,2538 (25,38 %-point) Facit: E[Rp] =0,1938; σ (Rp) = 0,2538 (25,38 %-point)

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The question wants us to calculate the expected return and volatility of an efficient portfolio wher... View the full answer