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4. An investor uses a risky set P and a risk-free asset to build a complete portfolio, and y = 3%, E(Tp) -6%, and Op

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4. An investor uses a risky set P and a risk-free asset to build a complete portfolio, and y = 3%, E(Tp) -6%, and Op = 12%. (A) If the investor wants to achieve a complete portfolio with E(re) = 8%, what should the weight of asset P in the complete portfolio y be? (5 pts) (b) What is the standard deviation of the complete portfolio oc? (4 pts) (C) Suppose the risky aset P itself is a portfolio of two stocks A and B. The weights are wA = 60%, wg = 40%. Calculate the weights of stock A, stock B, and the risk free asset in the complete portfolio C. (6 pts)

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