A stocks pays an expected return of 12% and a standard deviation of 15%. You...
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Accounting
A stocks pays an expected return of 12% and a standard deviation of 15%. You invest 30% of your total wealth on treasuries and the rest on the stock. The risk-free rate is 4%. a. Calculate the expected return and standard deviation of your portfolio b. Calculate his risk premium of the portfolio c. Compute the price of risk and Sharpe ratio.
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