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You invest $100 in a risky asset with an expected rate of return of 0.14 and a standard deviation of 0.16 and a T-bill with
You invest $100 in a risky asset with an expected rate of return of 0.14 and a standard deviation of 0.16 and a T-bill with a rate of return of 0.04. To form a portfolio with an expected return of 0.134, you must invest % of your money must be invested in the risky asset and the rest in the T-bill. (Please round your answer to one decimal place and note 0.325 should be expressed as 32.5%). Question 4 0.3 pts An investor with a degree of risk aversion of 4 (A=4) is considering to form a complete portfolio by investing in a risky asset with an expected rate of return of 19.8% and a standard deviation of 25%, and a T-bill that pays 3%. He could achieve the highest utility if he allocates % of his money to the risky asset. (Please round your answer to two decimal place and note 0.251 should be expressed as 25.1%)
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