Calculate the risk free rate


Question: Assume that securities X and Y are perfectly negatively correlated, with expected returns 8 percent and 12 percent and standard deviations 15% and 25%, respectively. Calculate the risk-free rate [or the rate of return on a risk-free portfolio].

Suggestion: You have to create a portfolio with zero volatility.

Request for Solution File

Ask an Expert for Answer!!
Portfolio Management: Calculate the risk free rate
Reference No:- TGS019629

Expected delivery within 24 Hours