Question
A rational investor who acts with risk aversion in relation to all financial decisions can have risk-free deposits or loans with interest rate 1% and
A rational investor who acts with risk aversion in relation to all financial decisions can have risk-free deposits or loans with interest rate 1% and consider investment in one or both of two funds. The Global Equity Fund has an expected return of 8% and a standard deviation of 20%. The hedge fund Vekst has an expected return of 10% and a standard deviation of 20%. The investor reckons that it is not any correlation between the returns of the two funds and will not have other risk investments. What percentage of the money the investor chooses to invest in one or both funds, will be invested in Hedgefondet Vest? (Answer with decimal numbers from 0 to 1. Two decimals are enough.)
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