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According to tangency portfolio allocation, the allocation in stock A is 0 . 1 , the allocation in stock B is 0 . 4 ,
According to tangency portfolio allocation, the allocation in stock A is the allocation in stock B is the allocation in stock C is The expected return of the tangency portfolio is Now the investor also considers riskfree asset as part of the investment.The expected return of the complete portfolio is and the weight on riskfree asset is The expected return of the riskfree asset is the portfolio weight on stock A is the portfolio weight on stock Bis the portfolio weight on stock C is
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