Given that the risk free rate is 10%, the expected return on the market portfolio...
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Accounting
Given that the risk free rate is 10%, the expected return on the market portfolio is 20% and the standard deviation of returns on the market portfolio is m = 0.2
i. What percentage of your wealth would you have to put into the riskless asset and into the market portfolio in order to have a 25% expected rate of return.
ii. What would be the variance of portfolio of part (i).
iii. What is the correlation between the portfolio in part (i) and market portfolio.
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