You are considering a risky portfolio investment, which has a 10 % return and 11.7 % standard deviation. The riskfree rate is 4.7 %. You plan to invest 50.8 % of your savings in risky assets. You plan to allocate all your savings into risky and riskfree assets, and lending and borrowing is also possible.
a, Determine the standard deviation of the complete portfolio.
b, Determine the expected return of the complete portfolio.
c, Determine the slope of the capital allocation line (Sharpe Ratio).