What is your clients level of risk aversion

Reference no: EM133332200

Question: You manage a risky portfolio P with the following characteristics:

E(rp) = 12%; sp = 18%;

In addition, rf = 4%

Your client asks you to construct a complete portfolio that will have an expected rate of return of 16%. Using only the risky portfolio and the risk free asset, what investments weights should portfolio P and the risk free asset have? *What would the standard deviation of the portfolio be?*Assuming a standard utility function, what is your client's level of risk aversion?

Reference no: EM133332200

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