Question: Johnson requests the portfolio standard deviation to equal one-half the market portfolio standard deviation. The market portfolio ow = 20%, which implies op = 10%.

Johnson requests the portfolio standard deviation to equal one-half the market portfolio standard deviation. The market portfolio ow = 20%, which implies op = 10%. The intercept of the CML equals my = 5% and the slope of the CML equals the Sharpe ratio for the market portfolio (35%). Therefore using the CML

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