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Portfolio Construction: Expected Return and Risk-Free Rate

In the real world, is it possible to construct a portfolio of stocks that has an expected return equal to the risk-free rate? Provide examples.

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It is not possible to construct such portfolio because stocks cannot be risk-free. Even if we select blue chip stocks and build a relatively safer portfolio with low expected returns, an ...

Solution Summary

Discusses whether it is possible to construct a portfolio of stocks that has an expected return equal to the risk-free rate.

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