Suppose you have $2,000 to invest.The market portfolio has an expected return of 10.5% and a standard deviation of 16%.The risk-free rate is 3.75%.How much should you invest in the risk-free asset if you wish to have a 15% return on the portfolio?
A) $667
B) -$667
C) $1,333
D) -$1,333
Correct Answer:
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