contestada

you invest $100 in a risky asset with an expected rate of return of 0.11 and a standard deviation of 0.20 and a t-bill with a rate of return of 0.03. what percentages of your money must be invested in the risk-free asset and the risky asset, respectively, to form a portfolio with a standard deviation of 0.08?

Respuesta :

46% of the funds are placed in risk-free assets, whereas 54% are invested.

Investing $100 in a risky asset with an expected rate of return of 0.11 and a standard deviation of 0.20

T-bill with a rate of return of 0.03. what percentages of your money must be invested in the risk-free asset and the risky asset

8% in portfolio return

3.50%

W1 = Weight of Asset 1 + Return on Risky Assets

(Return on risky assets)

Riskless return

=W1×11 % +(1−W1)×4.5%

=6.5%W1

=54% /W2 =(1−W1)

=(1−54%) /=46%

As a result, 54% of the money is put into risky assets, while 46% is put into risk-free assets.

Learn more about risky asset at

https://brainly.com/question/17100646?referrer=searchResults

#SPJ4

Otras preguntas