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20.If your clients risk aversion factor A = 2, what is the optimal allocation between Optimal Risky Portfolio and Rf security? If you want to

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20.If your clients risk aversion factor A = 2, what is the optimal allocation between Optimal Risky Portfolio and Rf security?

If you want to achieve the Rp = 0.30%, how much would you invest into Risky portfolio and how much into Rf security?

Risk Free 0.042362 -0.5 0.043464 -0A 0.044667 -0.3 0.045963 -0.2 0.047327 0.048702 0.049974. 0.1 0.050940 0.2 0.0 1277 0.3 0.05055 0.4 0.048328 (D.S 0.044408 0.6 0.039038 0.7 0.03 28S7 0.8 0.026582 0.9 0.020733 0.015 SS7 0.011106 0.00 330 0.004136 1.4 0.001431 0.0 1277 2-Stock Portfolio 0.69% 0.66% 0.64% 0.61% 0.58% 0.56% 0.53% 0.8 0.50% 0.7 047% 0.6 0 45% 0.42% 0.39% 0.37% 0.34% 0.31% 0.28% 0.25% 0.23% 0.20% 0.18% 0.15% 0.13% 0.017334 0.014906 0.01271 0.010748 0.009018 0.00 S2 0.0062 S7 0.005225 0.004427 0.003860 0.003527 0.003426 0.003 SS9 0.003923 0.00452 0.0053 1 0.006414 0.00710 0.009238 0.011000 0.012994. 13.17% 12.21% 11.27% 10.37% 9.50% 8.67% 7.91% 7.23% 6.21% 5.94% 5.8S% 5.97% 6.26% 6.72% 7.32% 8.01% 8.73% 9.61% 10.49% 11.40%

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