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28) ors 1. Consider an investor of risk aversion 10 who is interested in splitting his wealth between a non-risky asset with rate of

28) ors 1. Consider an investor of risk aversion 10 who is interested in splitting his wealth between a non-risky asset with rate of return .04 and a risky asset with mean rate of return .08 and standard deviation .1. How should he do it, and what are the mean and variance of his rate of return?

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