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3. Mr. Lee has the utility function of U = E(r) - 40%, where E(r) is the expected return and o is the standard deviation.

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3. Mr. Lee has the utility function of U = E(r) - 40%, where E(r) is the expected return and o is the standard deviation. Asset Expected Return Standard Deviation Risk-free Rate 5% 0 Asset A 10% 10% Asset B 15% 15% Correlation coefficient of Asset A and Asset B is 0.5. What is the optimal risky portfolio return for Mr. Lee

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