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Suppose you currently have $ 6 0 0 0 invested in Tbills ( and there is nothing else in your account ) . Firm F
Suppose you currently have$ invested in Tbills and there is nothing else in your account
Firm F has a risk premium of and a Sharpe ratio of
You are planning to sell some of your Tbills and to invest the proceeds in F
If you are willing to tolerate volatility, what is the dollar amount you invest in F
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