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    121287's Avatar
    121287 Posts: 1, Reputation: 1
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    #1

    Oct 19, 2013, 11:39 PM
    The expected rate of return and standard deviation
    Suppose an investor invests 75% in the tangency portfolio and 25% in the riskless asset. What is the expected rate of return and standard deviation of this portfolio? If the investor has $100,000, how much will he invest in Risky Asset 1, Risky Asset 2 and riskless asset?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Oct 21, 2013, 02:00 PM
    Lets see, 75% of $100,000 is $75,000 and 25% of $100,000 is $25,000
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