The risk-free return is 3%. The expected market return is 8%, with a standard deviation of 2.5%. To obtain an expected return of of 6%, what share of assets must be held in the risky asset? What is the level of risk associated with the resulting portfolio?

Answer rating: 100% (QA)

To determine the share of assets that must be held in the risky asset to obtain an expected return o... View the full answer