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Question: a. From capital market theory, what factor determines how much an investor invests in the risk-free asset, and how much is invested in the

Question: a. From capital market theory, what factor determines how much an investor invests in the risk-free asset, and how much is invested in the portfolio of risky assets?

b. If an investor invests all of their available funds, investing $6000 in MSFT and $4000 in AAL, then what are the weights invested in each stock?

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