Question
You are presented with two assets, a risky asset with expected return E[Rp] = 15% and standard deviation of the return p = 22%, a
You are presented with two assets, a risky asset with expected return E[Rp] = 15% and
standard deviation of the return p = 22%, a riskless asset with return Rf = 7%.
If an investor's coefficient of risk aversion is A = 3, what proportion of your funds
should be allocated to the risky asset?
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Personal Finance
Authors: E. Thomas Garman, Raymond E. Forgue
13th edition
1337099759, 978-1337516440, 1337516449, 978-1337099752
