Question: how do you calculate rp and sigma p? Example: risk free and risky asset portfolios: risky = 12.08%; E(r risky ) = 16.2%; r f

how do you calculate rp and sigma p?

Example: risk free and risky asset portfolios:

risky = 12.08%; E(rrisky) = 16.2%; rf = 4%;

x1 x2 rp p = x22

A .00 1.0 4 0

B .25 .75 7.05 3.02

C .50 .50 10.10 6.04

D .75 .25 13.15 9.06

E 1.00 .00 16.20 12.08

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