Please assist with the following, thank you.
A portfolio that combines the risk-free asset and the market portfolio has an expected return of 25 percent and a standard deviation of 4 percent. The risk-free rate is 5 percent, and the expected return on the market portfolio is 20 percent. Assume the capital-asset-pricing model holds. What expected rate of return would a security earn if it had a 0.5 correlation with the market portfolio and a standard deviation of 2 percent?© BrainMass Inc. brainmass.com June 3, 2020, 5:57 pm ad1c9bdddf
Rp = 25%
Sp = 0.04
Rf = 5%
Rm = 20%
correlation coefficient is r = 0.5
Std. dev. of security is Ss = ...
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