Find erb if the return of a riskless portfolio composed

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Let the expected returns of A and B be equal to .09 and ErB, respectively. Also, suppose that the standard deviations are σA =.04 and σB =.10, and the two securities are perfectly positively correlated. Find ErB if the return of a riskless portfolio composed of A and B is .05.

 

Reference no: EM131139058

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