What are the portfolio weights of the four assets

Reference no: EM131421004

The three-stock portfolio in Example 4.15 (portfolio variance: .03) is combined with a riskfree investment.

a. What is the variance and standard deviation of the return of the new portfolio if the percentage of wealth in the risk-free asset is 25%? What are the portfolio weights of the four assets in the new portfolio?

b. Repeat the problem with 50% as the weight on the risk-free asset.

Reference no: EM131421004

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