A risky fund has an expected return of 12% and standard deviation of 18%.

The risk-free rate is 6%.

A risk-averse investor having a risk aversion coefficient (A) equal to 3.5. is considering investing a portion of her retirement money in the risky fund with the remainder in cash.

a. Can't tell from information provided. Need the return and risk of the optimal complete portfolio.

b.0.43

c.0.67

d.0.33

e.0.53

f. 0.24