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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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