Question: Using the information from problem 4, the investor decides that the optimal weight to invest in the risky asset y* calculated in problem 4 seems
Using the information from problem 4, the investor decides that the optimal weight to invest in the risky asset y* calculated in problem 4 seems too low, and so the investor decides to invest a higher percent of the complete portfolio, namely 50%, in the risky asset to raise both the risk and the expected return for the complete portfolio.What is the expected return for the non-optimal complete portfolio with this increased level of risk?Enter your answer rounded to two decimal places.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
