Question: Question 32 Not yet graded / 10 pts a You are creating a complete portfolio for a client with a risk avefsion (A) of 8.
Question 32 Not yet graded / 10 pts a You are creating a complete portfolio for a client with a risk avefsion (A) of 8. You begin by finding an optimal risky portfolio consisting of 70% Firm Q and 30% Firm S. Firm Q has a return of 15% and a risk of 25%. Firm S has a return of 12% and a risk of 30%. The correlation between Firm Q and Firm S is 0.2. What is the expected return and risk of your client's complete portfolio? Assume a risk free rate of 1% in your calculations. (10 points total)
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