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Paula invests $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected return of 13% and a standard
Paula invests $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected return of 13% and a standard deviation of 20% and a Treasury bill with a rate of return of 5%. If Paulas goal is to construct a complete portfolio with standard deviation of 16%, how much money (in $) should she invest in the risky asset?
$800 | ||
$200 | ||
$244.40 | ||
$133.30 |
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