Essay
You currently own $100,000 worth of Walmart stock.Suppose that Walmart has an expected return of 14% and a volatility of 23%.The market portfolio has an expected return of 12% and a volatility of 16%.The risk-free rate is 5%.Assuming the CAPM assumptions hold,what alternative investment has the lowest possible volatility while having the same expected return as Walmart? What is the volatility of this portfolio?
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E[RxCML] = rf + x(E[RMkt] - rf...View Answer
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