Question
Two Stock Portfolio Weight Stock A 40% Weight Stock B 60% Portfolio Returns 1.09% Standard deviation 4.96% Risk free rate 0.05% How much money should
| Two Stock Portfolio |
|
| Weight Stock A | 40% |
| Weight Stock B | 60% |
| Portfolio Returns | 1.09% |
| Standard deviation | 4.96% |
| Risk free rate | 0.05% |
How much money should a risk averse investor with $800,000 wealth put in each stock and in the risk free rate to maximize his utility, if his risk aversion coefficient is A=2?
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ISE Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett, Otgo Erhemjamts
8th International Edition
1265561435, 9781265561437
