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An active investor has identified 3 stocks to form an active portfolio following the TreynorBlack Model. Stock J has an alpha of 5.75% and a

An active investor has identified 3 stocks to form an active portfolio following the TreynorBlack Model. Stock J has an alpha of 5.75% and a residual standard deviation (RSD) of 28%; stock K has alpha = 2.75% and RSD = 18%; stock L has alpha = 3.95% and RSD = 22%. What is the optimal weight in the active portfolio for stock K? Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.

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