Find the expected return on a well-diversified portfolio

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Question: The market portfolio has an expected return of 12.4 percent and a standard deviation of 22.4 percent. The risk-free rate is 5.4 percent.

a. What is the expected return on a well-diversified portfolio with a standard deviation of 9.4 percent

b. What is the standard deviation of a well-diversified portfolio with an expected return of 20.4 percent?

Reference no: EM131994849

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