Risky asset by borrowing at the risk-free rate

Reference no: EM133432263

Question: Suppose there are two assets. There is a risk-free investment that yields a return of 4% and a risky asset that has an expected return of 17% and a standard deviation of 10%. Your portfolio consists of shorting 45% of the risky asset by borrowing at the risk-free rate.

Reference no: EM133432263

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