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8. Consider the investment allocation choices when faced with one risky asset and one risk-free asset. The allocation strategy risk-averse investors use to allocate their

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8. Consider the investment allocation choices when faced with one risky asset and one risk-free asset. The allocation strategy risk-averse investors use to allocate their portfolios is reported as MaxyU=E(rc)1/2Ac2,y=Ap2E(rp)rf (page 19, Lecture 3 portfolio Analysis slides) Write down the mathematical derivations for it. You should follow the notations we use in our lecture. Try to be brief

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