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Assume the market risk premium is 16%. The standard deviation of the market return is 20%. What proportion of ones budget should be invested in

Assume the market risk premium is 16%. The standard deviation of the market return is 20%. What proportion of ones budget should be invested in the market portfolio for an investor with a risk aversion of 8?

A)100% B)50% C)20% D)16%

please be specific and show the formula an steps not just the answer

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