What is the expected return on a well-diversified portfolio

Reference no: EM131993542

Question: The market portfolio has an expected return of 11.1 percent and a standard deviation of 21.1 percent. The risk-free rate is 4.1 percent.

a. What is the expected return on a well-diversified portfolio with a standard deviation of 8.1 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return %

b. What is the standard deviation of a well-diversified portfolio with an expected return of 19.1 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Standard deviation %

Reference no: EM131993542

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