What is the expected return of the investor portfolio

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The risk-free rate is currently 0.1% per annum. The market portfolio expected return is 6.5% per annum and the risk, as measured by standard deviation, is 3% per annum. The investor chooses to invest 30% in the risk-free asset. What is the expected return of the investor's portfolio? What is the risk, as measured by standard deviation, of the investor's portfolio? Show all workings.

Reference no: EM132724265

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