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You have $150,000 to invest. Your investment choices include a risky asset with an expected rate of return of 12% and a standard deviation of
You have $150,000 to invest. Your investment choices include a risky asset with an expected rate of return of 12% and a standard deviation of 22% and a risk-free asset with a rate of return of 3%. How much of your money should you invest in each asset if you want to form a portfolio with an expected return of 10%?
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