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Business, 14.11.2019 07:31 jayline2003

You invest $1,000 in a complete portfolio. the complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a treasury bill with a rate of return of 6%, what proportion ofyour $1,000 investment should be invested into theriskyasset and what proportion into the treasury bill if you want your portfolio to have an expected value of $1,100 in 1 year? what will be the resulting standard deviation of your complete portfolio?

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