Expected return and standard deviation of a portfolio

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Suppose that a fund that tracks the S&P has mean E(RM) = 16% and standard deviation sigmam = 10%, and suppose that the T-bill rate Rf = 8%. Answer the following questions about efficient portfolios:

What is the expected return and standard deviation of a portfolio that has 50% of its wealth in the risk-free asset and 50% in the S&P?

Reference no: EM131445252

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