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Problem 3 Intro Infinity Capital fund has an expected return of 11% and a standard deviation of returns of 24%. T-bills have a return of
Problem 3 Intro Infinity Capital fund has an expected return of 11% and a standard deviation of returns of 24%. T-bills have a return of 3%. A client has $7,000 to invest and needs to decide between investing in the Infinity Capital fund and T-bills. - Attempt 1/10 for 10 pts. Part 1 If the client's degree of risk aversion is A = 5.1, what proportion of his total investment should be invested in the Infinity Capital fund? 0.2723 Correct y E(rp) rf A:0 0.11 0.03 5.1. 0.242 = 0.2723 Part 2 Attempt 1/10 for 10 pts. What is the standard deviation for the complete portfolio? 0.065359 Correct Oc = y* Op = 0.2723 * 0.24 = 0.0654 Part 3 Attempt 1/10 for 10 pts. What is the reward-to-volatility ratio for the complete portfolio? 2+ decimals Submit
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