Calculating portfolio expected return

Reference no: EM1366539

4. You can invest in a portfolio that has an expected return of 8 percent and a standard deviation of 0.10. You can also lend any amount at the risk free rate of 3 percent.

a. Create a portfolio that will have a standard deviation of 0.15 and compute this portfolio's expected return.
b. If the portfolio is the market portfolio, write the Capital Market Line.

Reference no: EM1366539

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