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a . Given the above information, a rational investor should invest 2 0 % of his ( her ) wealth in Tesla stock market if

a. "Given the above information, a rational investor should invest 20% of
his(her) wealth in Tesla stock market if the expected return of monthly risk-
free rate of 0.475 percent and the Cov (Tesla, Samsung) is 15. Is the
previous statement correct? Use xA and xB formulas discussed in the
lecture to explain your answer.
xA=|bar(R)A-R1|B2-|bar(R)B-R1|AB|bar(R)A-R1|B2+|bar(R)B-R1|A2-|bar(R)A-RJ+bar(R)B-R1|AB
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