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Jia has a risk aversion of 5.9. There are two assets she can invest in - a riskless asset that returns 3.4%, and a risky
Jia has a risk aversion of 5.9. There are two assets she can invest in - a riskless asset that returns 3.4%, and a risky asset whose return has an expected value of 14.5% and a standard deviation of 16.6%. What proportion of her money should Jia put in the risky asset? Please give your answer as a decimal to 4 places.
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