We construct a portfolio consisting of a risky instrument and a risk-free instrument. The expected return...
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We construct a portfolio consisting of a risky instrument and a risk-free instrument. The expected return on the risky instrument is 25% and the expected risk of this instrument is 30%. The return on the risk-free instrument is 10%. The value of the risky instrument in the portfolio is PLN 3500. The value of the whole portfolio is PLN 10000. Calculate the expected return on this portfolio. We construct a portfolio consisting of a risky instrument and a risk-free instrument. The expected return on the risky instrument is 25% and the expected risk of this instrument is 30%. The return on the risk-free instrument is 10%. The value of the risky instrument in the portfolio is PLN 3500. The value of the whole portfolio is PLN 10000. Calculate the expected return on this portfolio.
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Related Book For
Fundamentals of Financial Management
ISBN: 978-0324302691
11th edition
Authors: Eugene F. Brigham, ? Joel F. Houston
Posted Date:
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