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What would the expected return of the investor portfolio

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Question - If the expected return of the market portfolio (M) is 6.5% and its standard deviation is 10% and the risk-free rate of return is 2.5%, what would the expected return of the investor's portfolio if he is only willing to take a risk of 5%?

Is this investor considered a conservative or an aggressive investor and why?

Draw the CML explaining where on the line could this investor be?

Reference no: EM132989341

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