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What percentages of your money must be invested

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You invest $100 in a risky asset with an expected rate of return of 0.12 and a standard deviation of 0.15 and a T-bill with a rate of return of 0.05.

1) What percentages of your money must be invested in the risky asset and the risk-free asset, respectively, to form a portfolio with an expected return of 0.09?

2) What will be the standard deviation of the rate of return on your portfolio with an expected return of 0.09?

Reference no: EM132465364

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