A portfolio that combines the risk-free asset and the market portfolio has an expected return of 6.9 percent and a standard deviation of 9.9 percent. The risk-free rate is 3.9 percent, and the expected return on the market portfolio is 11.9 percent. Assume the capital asset pricing model holds. What expected rate of return would a security earn if it had a. 44 correlation with the market portfolio and a standard deviation of 54.9 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)
+1
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A portfolio that combines the risk-free asset and the market portfolio has an expected return of 6.9 percent and a standard deviation of ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » A portfolio that combines the risk-free asset and the market portfolio has an expected return of 6.9 percent and a standard deviation of 9.9 percent. The risk-free rate is 3.9 percent, and the expected return on the market portfolio is 11.9 percent.