Business, 19.07.2021 18:00 06jesher44395

Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected return of 20 percent and a standard deviation of returns of 16 percent. The risk-free asset has an interest rate of 4 percent. Calculate the standard deviation of the resulting portfolio.

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Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a port...