What percent of your wealth would have to be invested

Assignment Help Microeconomics

Reference no: EM132197918

Question: If the risk-free rate of return is 6% and if a risky asset is available with a return of 7% and a standard deviation of 4%, what is the maximum rate of return you can achieve if you are willing to accept a standard deviation of 2%? What percent of your wealth would have to be invested in the risky asset?

Reference no: EM132197918

Questions Cloud

Understanding of communication and leadership in business : Define and describe what you thought was worthy of your understanding of communication and leadership in the business.

Describe the effect on gdp-unemployment : Describe the effect on GDP, unemployment, and inflation of each of the following: (a) war, (b) elimination of environmental regulations, and (c) cuts in welfare

Accurate measure of the standard of living : Is gross domestic product an accurate measure of the standard of living? Why or why not?

Medical marijuana laws : In recent years, about twenty states have passed so-called medical marijuana laws.

What percent of your wealth would have to be invested : If the risk-free rate of return is 6% and if a risky asset is available with a return of 7% and a standard deviation of 4%, what is the maximum rate of return.

Legalization of presently illegal substances : Of what significance is the elasticity of demand for drugs in the debate about legalization of presently illegal substances?

Analysis of organizational intervention on amazon : Analysis of Organizational Intervention on Amazon.

What good or service is provided in the market : Choose a market for a good in your area that seems to be a perfectly competitive market. Perfect competition is useful in analyzing real-world markets.

Why do you think organized labor groups : Why do you think organized labor groups, such as unions, are supporters of a higher minimum wage, even though all of their members earn much more than the minim

User Account

All Pages