Assuming risk free rate to be 2% p.a while market return is expected to be 8% return with a Standard Deviation of 10%, answer the following question using Markowitz Model of lending and borrowing at risk free rate Questions : a) River Park fund aims to earn a 12% Return on their Portfolio comprising of equities tracking the Dow Jones and Risk free Securities. To achieve this goal, how much risk will they have to assume? Show the risk return combination for the fund with the weights

Assuming risk free rate to be 2% p.a while market return is expected to be 8% return with a Standard Deviation of 10%, answer the following question using Markowitz Model of lending and borrowing at risk free rate Questions : a) River Park fund aims to earn a 12% Return on their Portfolio comprising of equities tracking the Dow Jones and Risk free Securities. To achieve this goal, how much risk will they have to assume? Show the risk return combination for the fund with the weights

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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