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(Ref. Unit 3 Exercise 3) Your friend is managing a risky portfolio with an expected return of 17% and a standard deviation of 27%. Suppose

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(Ref. Unit 3 Exercise 3) Your friend is managing a risky portfolio with an expected return of 17% and a standard deviation of 27%. Suppose that you want to invest in a complete portfolio (C) that includes your friend's risky portfolio (P) and the T-bill (risk-free). The T-bill rate is 5%. You have a risk aversion of 3. A. (1 point) Determine the investment proportion in the risky portfolio (= y). B. (1 point) What is the expected return on your complete portfolio (C)? C. (1 point) What is the standard deviation of your complete portfolio (C)? D. (1 point) Now suppose that your risk aversion is 2 (not 3). Without any calculation, explain whether the expected return on your complete portfolio will be higher or lower than in Part C

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