Question: Portfolio 1 expected return : 7% standard deviation : 5% Expected risk premium/unit of risk : 0.40 Expected risk premium is calculated using risk free

Portfolio 1

expected return : 7%

standard deviation : 5%

Expected risk premium/unit of risk : 0.40

Expected risk premium is calculated using risk free rate of 4%

Using CML (capital market line ), calculate Return for the Portfolio with risk tolerance of 8 percent.

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