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Assume that the optimal risky portfolio has 80% stock and 20% bind, If an investor decides to invest in 40% risk free asset and 60%

Assume that the optimal risky portfolio has 80% stock and 20% bind, If an investor decides to invest in 40% risk free asset and 60% risky optimal portfolio, what is the allocation to stock?

A. 32%

B. 36%

C. 40%

D. 48%

E. 60%

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