The Expected Return of the Market Portfolio Is 14% with a Standard

question 25

Multiple Choice

The expected return of the market portfolio is 14% with a standard deviation of 25%.The risk-free rate is 6%.What would be the weight of the market portfolio in an efficient portfolio with a standard deviation of 30%, if borrowing is not allowed?

• A)16.78%
• B)83.33%
• C)20%
• D)Cannot be constructed

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