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A person wants to create a portfolio by combining a mutual fund and treasury bills. The mutual fund has a variance of 0.09 and an
A person wants to create a portfolio by combining a mutual fund and treasury bills. The mutual fund has a variance of 0.09 and an expected return of 6%. The return on treasury bills is 2%. The person's goal is to create a portfolio that has a variance of 0.0625. Find the fraction of the person's money that needs to be invested in treasury bills to reach his goal.
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