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Business, 23.03.2021 05:20 leenzazou98241

You are given the following information about the monthly returns of Delta (DAL), the market portfolio, and the risk-free rate: Security Expected return Standard deviation Risk-free 0.0025 0 DAL 0.009 0.109 Market 0.012 0.043 A relative tells you that they have invested all of their life savings into Delta because they like Delta's high expected rate of return. You are worried that your relative's portfolio is currently under-diversified, and are looking to create a portfolio that can deliver the same expected return as DAL, but for the lowest standard deviation possible. What is the risk (expressed as a standard deviation) of the efficient portfolio you should suggest to your relative

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