Unformatted text preview: c. What is the standard deviation of return on the optimal risky portfolio? d. The graph below illustrates the portfolio choice set for this problem. Label the points representing stock A and stock B. Illustrate the optimal portfolio choice when the risk free rate is 4% by drawing the appropriate Capital Asset Line (CAL). Portfolio Selection 0.05 0.1 0.15 0.2 0.25 0.1 0.2 0.3 Standard Deviation Expected Return...
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This note was uploaded on 02/20/2012 for the course ECON 445 taught by Professor Staff during the Fall '08 term at Texas A&M.
- Fall '08