You have identified the tangent market portfolio, which has an expected return of 10.4% and a standard deviation of 33.9%. The risk-free rate for both borrowing and lending is 2.7%. You have identified the optimal portfolio weight in the tangent portfolio as 1.25. What is the volatility of your complete portfolio? Write your answer as a percentage and round at one (1) decimal (do not write the percentage sign).

You have identified the tangent market portfolio, which has an expected return of 10.4% and a standard deviation of 33.9%. The risk-free rate for both borrowing and lending is 2.7%. You have identified the optimal portfolio weight in the tangent portfolio as 1.25. What is the volatility of your complete portfolio? Write your answer as a percentage and round at one (1) decimal (do not write the percentage sign).

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 6P

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