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Consider the following information about a risky portfolio that you manage and a risk - free asset: E ( rP ) = 8 % ,
Consider the following information about a risky portfolio that you manage and a riskfree asset: ErPsigma Prf Your client wants to invest a proportion of her total investment budget in your risky fund to provide an expected rate of return on her overall or complete portfolio equal to What proportion should she invest in the risky portfolio, P and what proportion in the riskfree asset?
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