Suppose that you are appointed as a tenured professor and have a riskless stream of income with a present value of $2 million. The value of your current financial wealth in your savings account is $6 million. You are deciding a portfolio allocation between an S&P 500 index fund and Treasury bills for your financial portfolio. You are a mean-variance investor with a risk aversion of 8. The S&P 500 index funds Sharpe ratio is 0.54 and its volatility is 22%.

Which fraction of your financial wealth do you optimally invest in the S&P 500 index fund?

	A.	40.91%
	B.	59.09%
	C.	29.75%
	D.	70.25%