Gibson fender is contemplating dividing his portfolio


Gibson Fender is contemplating dividing his portfolio between two assets, a risky asset that has an expected return of 10% and a standard deviation of 5%, and a T-bond that has a return of 6% a) If G. Fender is willing to accept a standard deviation of 3%, how should he divide is wealth between the two assets? b) What is his expected return? c) What is the price of risk?

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Financial Management: Gibson fender is contemplating dividing his portfolio
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