This preview shows page 1. Sign up to view the full content.
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...
View Full
Document
 Fall '08
 Staff

Click to edit the document details