Multiple Choice
The return on the risky portfolio is 15%. The risk-free rate, as well as the investor's borrowing rate, is 10%. The standard deviation of return on the risky portfolio is 20%. If the standard deviation on the complete portfolio is 25%, the expected return on the complete portfolio is ________.
A) 6%
B) 8.75 %
C) 10%
D) 16.25%
Correct Answer:
Verified
Correct Answer:
Verified
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