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You invest $20,000 of your wealth in a complete portfolio. The risky asset in the complete portfolio has an expected return of 17% and a
You invest $20,000 of your wealth in a complete portfolio. The risky asset in the complete portfolio has an expected return of 17% and a standard deviation of 27%. The risk-free asset has a rate of return of 5%. What dollar amount of your complete portfolio should be invested in the risky portfolio if you want your complete portfolio to have a standard deviation of 10%?
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