Homework answers / question archive / A financial advisor is offering you a product with an expected return of 21% and a return standard deviation of 32%

A financial advisor is offering you a product with an expected return of 21% and a return standard deviation of 32%

Finance

Share With

A financial advisor is offering you a product with an expected return of 21% and a return standard deviation of 32%. The risk-free rate is 2.7%, the market return is 16.4%, and the market volatility is 25%. How much should you invest in the risk-free asset of an optimal portfolio to obtain the same expected return?
Select one:
a. 33.58%
b. -133.58%
c. 133.58%
d. -33.58%