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Given the following data: Equity Investmeat =$600,000 Borrowed Amount =$420,000 Risk frec rate (Lending) =6%6 Risk free rate (Borrowing) =8%. lieppecteit Refum of Risky Assets

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Given the following data: Equity Investmeat =$600,000 Borrowed Amount =$420,000 Risk frec rate (Lending) =6%6 Risk free rate (Borrowing) =8%. lieppecteit Refum of Risky Assets =18% Standard Deviation of Risky Assets -2556 Risk Aversion Score -3 A) An investor would tike to make a leveraged portfolio. Determine the following: 1. Fixpected Return of the complete portfolio 2. Standard Deviation of the conplete portfolio 3. Sharpe Ratio (4+3+2=9marks) B) Using the information given above. Determine the allocation (weight) to the risky assets at which utility is maximized, assuming a lending based pottfolio. marks)

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