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A portfolio with a standard deviation of 10% is made up of the market portfolio…

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Wize University Introduction to Finance Textbook > CAPM

Risk-Free Investing

3 Activities

A portfolio with a standard deviation of 10% is made up of the market portfolio and the risk free rate. The risk free rate is 5% and the market expected return is 20% with a standard deviation of 16%.
How much of the portfolio is invested in each asset?
Market portfolio
%
Risk free assets
%
More Risk-Free Investing Questions:
A portfolio consists of two securities: a risk-free asset and stock X. The expected return on the risk-free asset is 4.25%. The expected return of Stock X is 16% with a standard deviation of 22%. What is the portfolio standard deviation if the expected return for the portfolio is 12%?
A portfolio has $1,000 invested in risk-free assets with a 4% rate of return and $4,000 invested in the market, with a 16% rate of return and 19% standard deviation.
What is the expected return of the portfolio?
A portfolio has $1,000 invested in risk-free assets with a 4% rate of return and $4,000 invested in the market, with a 16% rate of return and 19% standard deviation.
What is the standard deviation of the portfolio?
You have constructed a portfolio with 80% invested in the market portfolio and the rest invested in risk free assets. If the expected return and standard deviation of the market are 15% and 12%, and the risk free rate is 4%, what is the standard deviation of your portfolio?
You have constructed a portfolio with 80% invested in the market portfolio and the rest invested in risk free assets. If the expected return and standard deviation of the market are 15% and 12%, and the risk free rate is 4%, what is the expected return of your portfolio?