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Correlation between the portfolio

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Reference no: EM133061828

Given that the risk-free rate is 10%, the expected return on the market portfolio is 20%, and the standard deviation of returns to the market portfolio is 20%, answer the following questions:

-You have $100,000 to invest. How should you allocate your wealth among risk free assets and the market portfolio in order to have a 25% expected return?

-What is the standard deviation of your portfolio in b)?

-What is the correlation between the portfolio in b) and the market portfolio?

Reference no: EM133061828

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