Question

Using the formula for the capital market line (Formula 21-5), if the risk-free rate (RF) is 6%, the market rate of return (KM) is 12%, the market standard deviation (M) is 11%, and the standard deviation of the portfolio (P) is 14%, compute the anticipated return of the portfolio (KP).
A.20.4%
B.16.33%
C.13.64%
D.13.4%
E.13.2%

Answer

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