Question
For an investor with risk aversion score of 2.5, she should invest ________% of her portfolio into the market portfolio (and the remainder into the
For an investor with risk aversion score of 2.5, she should invest ________% of her portfolio into the market portfolio (and the remainder into the risk-free asset to optimize her asset allocation) which has an expected return of 12% and a standard deviation of 22%. Assume the risk free rate is 3%.
| 16.4% | ||
| 74.4% | ||
| 50.0% | ||
| 29.8% |
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
10th Edition
0073530697, 9780073530697
