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The market portfolio has 10% return and 16% risk. The risk-free rate is 4%. If you can borrow and lend at the risk-free rate, how

The market portfolio has 10% return and 16% risk. The risk-free rate is 4%. If you can borrow and lend at the risk-free rate, how much of your investment fund (in percentage) do you have to allocate in the market portfolio if you want to achieve 13% return?

1.5

0.5

1.6

0.6

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