Can you show process as well! You invest $100 in a...

50.1K

Verified Solution

Question

Accounting

Can you show process as well!
image
You invest $100 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 8% and a standard deviation of 10% and a Treasury bill with a rate of return of 0.2%. % of the complete portfolio should be invested in the risky asset to form this complete portfolio if it has an expected rate of return of 4.5% A) 55.1 B) 56.3 C) 57.6 D) 58.2

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students