What return and standard deviation of returns


Assume the market's risk premium (excess return over the risk-free rate) over the past 5 years was 8% while its standard deviation of returns was 13%. The risk-free rate was 2%. You had $10,000 to invest, and borrowed an additional $4,000 at the risk-free rate to invest in the market portfolio.

a) What return and standard deviation of returns did you earn?

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Finance Basics: What return and standard deviation of returns
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