9. The investor allocates some fraction to the risk-free and some fraction to a stock portfolio. The investor wants the maximize expected returns while restricting portfolio standard deviation not to exceed 12%. Return data is measured is USD. Consider the US stock portfolio. What fraction of their portfolio should be invested in the US stock portfolio?

9. The investor allocates some fraction to the risk-free and some fraction to a stock portfolio. The investor wants the maximize expected returns while restricting portfolio standard deviation not to exceed 12%. Return data is measured is USD. Consider the US stock portfolio. What fraction of their portfolio should be invested in the US stock portfolio?

	US portfolio	OIP Portfolio	Risk Free
Expected return	9%	13%	3%
Standard Deviation	18%	24%	0%

1. 58%

2. 62%

3. 67%

4. 78%

5. 89%