Multiple Choice
You invest $10,000 in a complete portfolio.The complete portfolio is composed of a risky asset with an expected rate of return of 15% and a standard deviation of 21% and a treasury bill with a rate of return of 5%.How much money should be invested in the risky asset to form a portfolio with an expected return of 11%?
A) $6,000
B) $4,000
C) $7,000
D) $3,000
Correct Answer:
Verified
Correct Answer:
Verified
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