Standard deviation of the complete portfolio

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Reference no: EM131566562

Consider the following information:

Risky Assets: A B

Expected return: 12% 8%

Standard deviation: 25% 14%

Correlation: .3

Risk-free rate = 3% (Treasury Bill Rate)

f- Find the expected return, variance, and standard deviation of the complete portfolio. The investor places 60% of wealth in Optimal Risky Portfolio and 40% in Treasury bills. Make sure to show your work.

Reference no: EM131566562

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