What is the expected return of portfolio

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-The market portfolio M has an expected return of 20% and a standard deviation of 20%. The risk-free investment has a return of 5%. You have $10000 to invest.

Scenario A: To build your investment portfolio, you borrow another $10000, together with your own $10000, you invest $20000 into the market portfolio. Answer questions a. to c.

-What is the standard deviation of your portfolio's return?

-What is the Sharpe ratio of your portfolio?

-Is your portfolio an efficient portfolio? First answer yes or no, then briefly explain.Scenario B: You are retiring, so you want to build a low-risk investment portfolio. You want your portfolio to have a standard deviation of 10%. Answer questions d. and e.

-How much money should you invest in the market portfolio?

-What is the expected return of your portfolio?

Reference no: EM133068193

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