You invest $10000 in a risky asset with an expected rate of return of 0.15 and a standard deviation of 0.20 and a T-bill with a rate of return of 0.05. If you have a risk-aversion parameter of 3.5, what is the expected return of your complete portfolio?

Answer rating: 100% (QA)

To calculate the expected return of a portfolio that consists of a risky asset and a riskfree asset ... View the full answer