In the market-the rate of return of the risk free asset

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Suppose in the market, the rate of return of the risk free asset is 10%. The tangency portfolio has an expected rate of return of 20% and a standard deviation of 20%.

1. In a mean-standard deviation graph, show all possible portfolios of risky asset, the tangency portfolio, the risk free asset, and the capital allocation line.

Reference no: EM13944534

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