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An investor has a coefficient of risk aversion of 4. The expected return of the risky portfolio is 10%, with a standard deviation of 17.4%.

An investor has a coefficient of risk aversion of 4. The expected return of the risky portfolio is 10%, with a standard deviation of 17.4%. The risk-free rate is 2%. What is the optimal allocation to the risky asset?

Group of answer choices

33.94%

11.49%

100%

66.06%

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