Suppose that the correlation coefficient between the rates


Suppose that the correlation coefficient between the rates of return on Knowlode Mutual Fund and the market portfolio is 0.7. The standard deviations of the rates of return are 0.20 for Knowlode and 0.15 for the market portfolio. How would you combine the Knowlode Fund and the riskless asset to obtain a portfolio with a beta of 1.5?

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Financial Management: Suppose that the correlation coefficient between the rates
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