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Leverage constraint. Suppose that you can save at the risk - free rate of 1 % but you can only borrow at a risk -

Leverage constraint. Suppose that you can save at the risk-free rate of 1% but you can only borrow at a risk-free rate of 2%. Suppose that E[Rs]=8%,\sigma s =15%. What is your allocation in stocks (Ws) if A=2?(in %, rounded to nearest whole number)

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