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Assume you manage a risky portfolio with an expected rate of return of 8% and a standard deviation of 18%. The T-bill rate is 3%.
Assume you manage a risky portfolio with an expected rate of return of 8% and a standard deviation of 18%. The T-bill rate is 3%. Suppose your client prefers to invest in your portfolio a proportion that maximizes the expected return of the overall portfolio subject to the constraint that the overall portfolio's standard deviation will note exceed 12%. What is the investment proportion in your fund? convert your answer to percentages and round to two decimal places
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