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uppose that the market portion has Risk-free rate Market Portfolio Return Market Standard Deviation 1.8% 12% 16% with a standard de Also suppose that 1-Bills A) What are the standard deviation and asset allocation characteristics of a portfolio with the 3% expected return? %, and the allocation to risk-free asset is %, the allocation to market is The standard deviation is decimal places. %. Round your answers to the nearest two B) What are the standard deviation and asset allocation characteristics of a portfolio with the 10.5% expected return? The standard deviation is %, the allocation to market is %, and the allocation to risk-free asset is %. Round your answers to the nearest two

uppose that the market portion has Risk-free rate Market Portfolio Return Market Standard Deviation 1.8% 12% 16% with a standard de Also suppose that 1-Bills A) What are the standard deviation and asset allocation characteristics of a portfolio with the 3% expected return? %, and the allocation to risk-free asset is %, the allocation to market is The standard deviation is decimal places. %. Round your answers to the nearest two B) What are the standard deviation and asset allocation characteristics of a portfolio with the 10.5% expected return? The standard deviation is %, the allocation to market is %, and the allocation to risk-free asset is %. Round your answers to the nearest two

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Suppose that the market portfolio has earned an average of 12% per year with a standard deviation of 16%. Also suppose that T-Bills currently yield 1.8%. Risk-free rate Market Portfolio Return 1.8% 12% Market Standard Deviation 16% A) What are the standard deviation and asset allocation characteristics of a portfolio with the 3% expected return? The standard deviation is %, and the allocation to risk-free asset is decimal places. %, the allocation to market is %. Round your answers to the nearest two B) What are the standard deviation and asset allocation characteristics of a portfolio with the 10.5% expected return? The standard deviation is %, and the allocation to risk-free asset is decimal places. %, the allocation to market is %. Round your answers to the nearest two C) What are the standard deviation and asset allocation characteristics of a portfolio with the 11.5% expected return? The standard deviation is decimal places. %, the allocation to market is %, and the allocation to risk-free asset is %. Round your answers to the nearest two
Transcribed Image Text:Suppose that the market portfolio has earned an average of 12% per year with a standard deviation of 16%. Also suppose that T-Bills currently yield 1.8%. Risk-free rate Market Portfolio Return 1.8% 12% Market Standard Deviation 16% A) What are the standard deviation and asset allocation characteristics of a portfolio with the 3% expected return? The standard deviation is %, and the allocation to risk-free asset is decimal places. %, the allocation to market is %. Round your answers to the nearest two B) What are the standard deviation and asset allocation characteristics of a portfolio with the 10.5% expected return? The standard deviation is %, and the allocation to risk-free asset is decimal places. %, the allocation to market is %. Round your answers to the nearest two C) What are the standard deviation and asset allocation characteristics of a portfolio with the 11.5% expected return? The standard deviation is decimal places. %, the allocation to market is %, and the allocation to risk-free asset is %. Round your answers to the nearest two
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