The expected return on a Vanguard fund is 12% and the standard deviation is 0.16. The risk-free rate is 7%. Assume you can borrow and lend at the risk-free rate and that you have $1,000 investment equity. How much money would you need to invest in Vanguard to create a portfolio with an expected return of 17%? O $2,000 O $1,000 O Not enough information provided to answer this questions

The expected return on a Vanguard fund is 12% and the standard deviation is 0.16. The risk-free rate is 7%. Assume you can borrow and lend at the risk-free rate and that you have $1,000 investment equity. How much money would you need to invest in Vanguard to create a portfolio with an expected return of 17%? O $2,000 O $1,000 O Not enough information provided to answer this questions

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 13P

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