Risk-free rate and invests-what is his expected return

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Reference no: EM132041306

The market portfolio has an expected return of 18% and the risk-free rate is 6%. An investor borrows $100 at the risk-free rate and invests this and a further $100 of his own in the market portfolio. What is his expected return?

Over a 20-year period an investment of $1,000 in common stocks returned an average of 11% in nominal terms and 4% in real terms. At the end of the 20 years, the portfolio value was?

Over the past 3 years an investment returned 18%, 12%, and 15%. What is the variance of returns?

Could someone please help? Please show work.

Reference no: EM132041306

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