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Aasir can invest his money in risk-free asset and/or in a fund F. The risk-free asset provides a guaranteed

return of 4%. The fund F provides expected return of 12% with

volatility of 25%. If Aasir wants to limit his risk to no more than 20%, what is the highest expected return he can earn? If Aasir wants an expected return of at least 16%, what is the minimum possible volatility of his portfolio?

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Answer If Aasir wants to limit his risk to no more than 20% , Highest... View the full answer

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