The market portfolio has an expected return of 11.1 percent and a standard deviation of 21.1 percent. The risk-free rate is 4.1 percent.
a. What is the expected return on a well-diversified portfolio with a standard deviation of 8.1 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Expected return %
b. What is the standard deviation of a well-diversified portfolio with an expected return of 19.1 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Standard deviation %
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