Ms. B has $1000 to invest. She is considering investing in the common stock of company M. In addition, Ms. B will either borrow or lend at the risk-free rate. Ms. B decide to invest $350 in common...

Ms. B has $1000 to invest. She is considering investing in the common stock of company M. In addition, Ms. B will either borrow or lend at the risk-free rate. Ms. B decide to invest $350 in common stock of company M and $650 placed in the risk- free asset. The relevant parameters are

1) What is the expected return? 2) What is the variance of the portfolio? 3) What is the standard deviation of the portfolio?

Common stock<br>Risk-free Asset<br>of company M<br>Expected return<br>14%<br>10%<br>Standard<br>20<br>deviation<br>

Extracted text: Common stock Risk-free Asset of company M Expected return 14% 10% Standard 20 deviation

Jun 11, 2022

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Ms. B has $1000 to invest. She is considering investing in the common stock of company M. In addition, Ms. B will either borrow or lend at the risk-free rate. Ms. B decide to invest $350 in common...

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