Question: please give me clear answer Suppose you have a riskless security at 5% and a market portfolio with a return of 10% and a standard
please give me clear answer
Suppose you have a riskless security at 5% and a market portfolio with a return of 10% and a standard deviation of 5%.
a) You invest in the riskless security and the market portfolio above and your portfolio has standard deviation of 10%. How is your investment decision (in terms of weight of each assets and explain your necessary action)? (10 points)
b) What is the expected return of your portfolio?
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