Determine the percentages of risk-free asset

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Dr. Filly invests $100 in a risky asset and a risk free asset. The risky asset has an expected return of 12 percent and a standard deviation of 15 percent, while the risk-free has a return of 5%.

What percentages of Dr. Fillys money must be invested in the risk-free asset and the risky asset, respectively, to form a portfolio with a standard deviation of 0.06?

Reference no: EM1373048

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