What is the minimum possible volatility of portfolio

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Aasir can invest his money in risk-free asset and/or in a fund F. The risk-free asset provides a guaranteed return of 4%. The fund F provides expected return of 12% with volatility of 25%. If Aasir wants to limit his risk to no more than 20%, what is the highest expected return he can earn? If Aasir wants an expected return of at least 16%, what is the minimum possible volatility of his portfolio?

Reference no: EM132389738

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