Question: FINANCE Question 5 7 Assume that the expected return on the market portfolio is 12% and the risk-free rate is 2%. The standard deviation of

FINANCE

Question 5 7 Assume that the expected return on the market portfolio is 12% and the risk-free rate is 2%. The standard deviation of the market portfolio is 30%. 5.1 If you desire a 10% expected return, what will be the associated standard deviation of this position (assuming it is efficient)? [2] 5.2 If you have R1000 to invest, how should you allocate it to achieve this position? 151

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