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You invest $1000 in a portfolio that is composed of a risky asset and a risk-free asset. The risky asset has an expected rate of
You invest $1000 in a portfolio that is composed of a risky asset and a risk-free asset. The risky asset has an expected rate of return of 15% and a standard deviation of 20%. The risk-free asset has a rate of return of 5%.
Your portfolio will have an expected return of 12% if you invest __________ in the risky asset, and the remaining in the risk-free asset
A)1000
B)900
C)700
D)500
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