What is your portfolio reward to risk ratio

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Reference no: EM131188653

A risky asset has an expected return of 12% and standard deviation of 18%. The risk-free rate is 6%. If you invest 40% of your funds in the risk-free asset and 60% of your funds in the risky asset, (A) what is your portfolio’s expected return, (B) what is your portfolio’s standard deviation, and (C) what is your portfolio’s reward to risk ratio?

Reference no: EM131188653

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