Solution-T-bill with a rate of return

T-bill with a rate of return

Reference no: EM132826007

Consider a T-bill with a rate of return of 5% and the following risky securities. From which set of portfolios, formed with the T-Bill and any one of the 4 risky securities, would a risk averse investor always choose his portfolio?

Security A: E(r) = 0.15; Variance = 0.04
Security B: E(r) = 0.10; Variance = 0.0225
Security C: E(r) = 0.12; Variance = 0.01
Security D: E(r) = 0.13; Variance = 0.0625

Reference no: EM132826007

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T-bill with a rate of return

Reference no: EM132826007

Reference no: EM132826007

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