What is the expected return on an efficient portfolio with a standard deviation of 15 percent? Assume the risk-free rate is 6 percent and the expected return on the market portfolio is 14.8 percent with a standard deviation of 20 percent.
A) 8.20%
B) 12.60%
C) 16.50%
D) 17.73%

Question

Quizplus · Accepted Answer

Weight in market portfolio,11ea8229_34c6_b8a2_bbd8_8b707392c413_TB1726_11,Weight in risk-free asset = 1 - 0.75 = 0.25
Portfolio expected return, 11ea8229_34c6_dfb3_bbd8_b56a56c1845e_TB1726_11

What Is the Expected Return on an Efficient Portfolio with a Standard