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Consider a portfolio comprising stock X and stock Y. The standard deviations of stock X and Y are 36% and 16%, respectively. The expected return

Consider a portfolio comprising stock X and stock Y. The standard deviations of stock X and Y are 36% and 16%, respectively. The expected return of stock X is 30%. The expected return of stock Y is 11%. T-bill rate is 3%. If the correlation coefficient between the returns on X and Y is 0.25, what is the approximate proportion of the optimal risky portfolio that should be invested in stock Y?

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