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1. Optimal allocation with SPY and LQD (10 points). Consider the CAL going through tangency portfolio in question 3. Find the optimal allocation between this

1.Optimal allocation with SPY and LQD (10 points).Consider the CAL going through tangency portfolio in question 3. Find the optimal allocation between this portfolio and the risk-free asset for an investor with a coefficient of risk aversion (A) equal to 20. To compute the optimal weight, use the formula in the book as well as the optimization tool in Excel. What is the investor's attained utility (maximized value of the function)?

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