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The risk-free asset has a return of 2.19%. The risky asset has a return of 11.36% and has a variance of 5.91%. Karen has the

The risk-free asset has a return of 2.19%. The risky asset has a return of 11.36% and has a variance of 5.91%. Karen has the following utility function: U = ax In(re) - b X oc, with a=3.0 and b=1.7. r, and o denote the return and the risk of the combined portfolio Compute the optimal to be invested in the risky asset.

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