If the standard deviation of returns on the market is 20 percent, and the beta of a well-diversified portfolio is 1.5. Calculate
1 answer:
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Answer:
x = -6 and x = 4
Step-by-step explanation:
In math, the critical points of a function are the points where the derivative equals zero.
So, first we will find the derivative of the function. The derivative is:
Now, we are going to make the derivative equal zero and find the answers of the equation.
So we have that the critical points are the answers to this equation:
and
Thus, the critical points are x=-6 and x=4