Question: Consider a portfolio to achieve expected return 0.09 by a risky asset and a risk-free asset. 1. When the rate of return of risk-free asset
Consider a portfolio to achieve expected return 0.09 by a risky asset and a risk-free asset.
1. When the rate of return of risk-free asset is 0.06, consider a portfolio with a risky asset. What are the necessary rate of return & volatility of the risky asset?
2. What are the volatility of the portfolio?
(Answer in detail please! thank you :) )
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