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7. The risk-free asset has a 3.5% expected return. You have put together a risky portfolio with an expected return of 13.0% and a standard
7. The risk-free asset has a 3.5% expected return. You have put together a risky portfolio with an expected return of 13.0% and a standard deviation of 25.0%. Your risk aversion is A = 2.4 and Hannah, the retiree who lives next door, has a risk aversion of A = 4.20. 4 pts
- What is the expected return, standard deviation, and Sharpe ratio of your optimal complete portfolio using your risky portfolio?
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