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What optimal dollar amounts of your money must be invested

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Question - You invest $2,000 in a risky asset with an expected rate of return of 0.23 (and a standard deviation of 0.20) and a T-bill with a rate of return of 0.03. To form a portfolio, knowing that the coefficient of risk aversion equals 5, what optimal dollar amounts of your money must be invested in the risky asset and the risk-free asset, respectively?

Reference no: EM132599282

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