Determine the risk, Explain how Jenny might optimally

Determine the risk

Reference no: EM1367071

Given the following

RF = 5% p.a.
RM = 12% p.a.
Risk M = 10% p.a.

Explain how Jenny might optimally invest $1,000,000 in a portfolio of financial assets to earn an expected return of 14 percent per annum and determine the risk that she would face in doing so. State all necessary assumptions.

Reference no: EM1367071

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