Suppose now that you have a risk aversion coefficient A=2 and want to construct a complete portfolio on the best feasible CAL.

What should be the weight (y) allocated to the optimal risky portfolio?

You are considering three investment options. The first is a stock fund, the second is a corporate bond fund, and the third is a risk-free asset that yields a sure rate of 3%. The expected returns and standard deviations of the risky assets are: The correlation between the fund returns is 0.30