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Question 3 (10 points) You have a portfolio which is composed by a risky asset with an expected rate of return of 15% and a

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Question 3 (10 points) You have a portfolio which is composed by a risky asset with an expected rate of return of 15% and a standard deviation of 20% and a risk free asset with a rate of return of 10%. What portion of your portfolio should be invested in the risky asset if you want your portfolio to have a standard deviation of 8%. 80% 50% 40% 65%

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