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You are considering a risky portfolio investment, which has a 13.3 % return and 33.1 % standard deviation.The riskfree rate is 9.9 %. You plan
You are considering a risky portfolio investment, which has a 13.3 % return and 33.1 % standard deviation.The riskfree rate is 9.9 %. You plan to invest 44 % of your savings in risky assets. What proportion of your savings would you allocate in risky assets if your coefficient of risk aversion is 3.9. You plan to allocate all your savings into risky and riskfree assets, and lending and borrowing is also possible.
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