doubt for (d), at the back, its written that, the 50/50 portfolio has a expected return of ~9.5% and volatility of ~7.4% (i.e 50%*12.8%)
I’m not able to understand how they took the expected return to be 9.5%, is it a misprint? or if not then how?
and for (e), how to present the CML in slope intercept form?
Q Identification Tag: Assume the expected return on the market portfolio is 15.0% with volatility of 12.8%. The risk free rate is 4%.
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thank you sir