Question: Changing risk level. Ms. Chambers wants to change the expected return of her portfolio. Currently, she has all her money in U.S. Treasury bills with
Changing risk level. Ms. Chambers wants to change the expected return of her portfolio. Currently, she has all her money in U.S. Treasury bills with a return of 3%. She can switch some of her money into a risky portfolio with an expected return of 15%. What percentage of her wealth will she need to invest in the risky portfolio to get an expected return of 5%? Of 7%? Of 9%? Of 11%? Of 13%? Of 15%? Is there a pattern here
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