Your money should you invest in risky portfolio

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Reference no: EM131972561

You want to invest $1,200 in a risky asset and a risk-free asset. The risky asset has an expected rate of return of 13% and a standard deviation of 20% whereas the Treasury bill rate of return is 4%. If you want your complete portfolio to have a standard deviation of 7%, what percentage of your money should you invest in the risky portfolio?

Reference no: EM131972561

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