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Assume that y ou manage a risky portfolio with expected rate of return of 18% and standard deviation of 28%. The T-bill rate is 8%.

Assume that you manage a risky portfolio with expected rate of return of 18% and standard deviation of 28%. The T-bill rate is 8%.

a) Calculate the optimal allocation to risky portfolio and determine the utility score for this portfolio (assume A=3) [2]

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