PERFORMANCE APPRAISAL IN A TEAMWORK ENVIRONMENT

Put 25/32 of your money in F and lend 7/32 at 12%: Expected return = 7/32 X 12 + 25/32 X 18 = 16.7%; standard deviation = 7/32 X 0 + (25/32) X 32 = 25%. If you could borrow without limit, you would achieve as high an expected return as you’d like, with correspondingly high risk, of course. ................
................