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Hanna's risk aversion coefficient is 2.5. How much should she invest in the index fund and in the risk free T-bill, if she has $7200
Hanna's risk aversion coefficient is 2.5. How much should she invest in the index fund and in the risk free T-bill, if she has $7200 to invest, the index fund's expected return is 8%, the risk free rate is 1%, and the index fund's standard deviation is 14%? O Invest $10,286 in the fund, borrow $ 3,086 at risk free rate O Invest $3,086 in the fund, invest $7,200 in T-bill Invest $10.286 in fund, invest $3,086 in T-bill Invest 1.440 in the fund, invest $5,760 in the T-bill
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