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The Tolkien Fund has a standard deviation of 2 0 % , and the Lewis Fund has a standard deviation of 3 4 % .
The Tolkien Fund has a standard deviation of and the Lewis Fund has a standard deviation of You currently have of an investment account invested in Tolkien, and the rest in a riskfree asset. This results in your overall account having a standard deviation of Xnot given but easy to calculate
You decide to sell your ownership of Tolkien and purchase Lewis, rebalancing your investment account so that now you will own only Lewis and the riskfree asset. What portion of your account will need to be invested in Lewis with the rest in the riskfree asset so that your overall account will still have the same standard deviation of X that it did before?
Express your answer accurate and rounded to decimal places. If you believed you will need to invest of the account in Lewis, for example, then you would enter
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