You want to build a two-asset portfolio which includes the risk-free asset and the market portfolio. You want the portfolio to have an expected return of 7%. The expected return on the risk-free asset is 4% and the expected return on the market is 10%. 

Calculate What is the portfolio weight on the market portfolio?

Answer rating: 100% (QA)

To calculate the portfolio weight on the market portfolio we can use the capital asset pricing model ... View the full answer