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What is the weight should put into risky asset

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Reference no: EM132984852

You invest $1000 in a risky asset with an expected rate of return of 0.17 and a standard deviation of 0.40 and a T-bill with a rate of return of 0.04.

Problem 1: What is the weight you should put into risky asset to have an optimal portfolio if your coefficient of risk aversion A= 4?

Reference no: EM132984852

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