Suppose that you have found the optimal risky combination using all risky assets available in the economy, and that this optimal risky portfolio has an expected return of 0.19 and standard deviation of 0.24. The T-bill rate is 0.05. What fraction of your money must be invested in the optimal risky portfolio in order to form a complete portfolio with an expected return of 0.09? Round your answer to 4 decimal places. For example, if your answer is 3.205 % , then please write down 0.0321.
Suppose that you have found the optimal risky combination using all risky assets available in the economy, and that this optimal risky portfolio has an expected return of 0.19 and standard deviation of 0.24. The T-bill rate is 0.05. What fraction of your money must be invested in the optimal risky portfolio in order to form a complete portfolio with an expected return of 0.09? Round your answer to 4 decimal places. For example, if your answer is 3.205 % , then please write down 0.0321.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 13P
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning