Based on your risk tolerance 23 of your portfolio is


You invest in a complete portfolio. The risky asset has a standard deviation of 20%, and an expected return of 12%, and the risk-free rate (of return) is 3%. Based on your risk tolerance, 2/3 of your portfolio is invested in the risky asset, and the rest is invested in the risky-free asset. What is the portfolio's standard deviation?

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Finance Basics: Based on your risk tolerance 23 of your portfolio is
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