Investment strategy is to maximize expected return

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Reference no: EM13953914

Your investment strategy is to maximize expected return but with a risk level (standard deviation) that does not exceed 15%. Since you are a CAPM believer, you hold a combination of the market portfolio and risk free asset. the market expected return in 10% with a standard deviation of 20% and the risk free rate is 3%.

What portfolio do you hold?

Please show the calculations and offer explanation of 100 words

Reference no: EM13953914

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