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4. A risky asset P has expected return 15% and standard deviation 20%. The rate of return on risk-free Treasury bills is 5%. Find the

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4. A risky asset P has expected return 15% and standard deviation 20%. The rate of return on risk-free Treasury bills is 5%. Find the optimal portfolio of an investor with preferences given by U = E (7') 02, in each of the following cases: (a) borrowing to buy P on margin is possible at a rate of 5%, (b) borrowing to buy P on margin is possible at a rate of 10%

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