Question: You are thinking about a portfolio where you put half your money in stock A and half your money in the risk free asset
You are thinking about a portfolio where you put half your money in stock A and half your money in the risk free asset (like a Treasury bill). The risk free asset has a return of 5%. a. What is the variance and standard deviation of the risk free asset?
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Since the riskfree asset has a fixed return its variance is zero This is bec... View full answer
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