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Yimeng has two assets available to invest in: a riskless government bond with a return of 2.7% and an index fund with an expected return
Yimeng has two assets available to invest in: a riskless government bond with a return of 2.7% and an index fund with an expected return of 16.4% and a return variance of 20.0%. What percentage of his money should be put in the index fund if he has a coefficient of risk aversion of 4.1? Please enter your answer as a decimal to at least 4 places - if your answer is 10.5%, please enter 0.1050.
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