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You take a test on how risk averse you are, and the results say your level is 2 (i.e. A=2). How much of your portfolio

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You take "a test" on how risk averse you are, and the results say your level is 2 (i.e. A=2). How much of your portfolio would you invest in the "risky" portfolio if you wanted to maximize your utility (knowing that the remainder is invested in treasuries)? The risky portfolio has an expected return of 11% with a standard deviation of 23%. The treasuries currently yield 2%. If you maximize your utility, what is your standard deviation? Multiple Choice Risky portfolio weight - 75.69% Standard Deviation of combination of risky portfolio and treasuries - 19.48% Risky portfolio weight - 85.07% Standard Deviation of combination of risky portfolio and treasuries - 19.57% Risky portfolio weight - 75.69% Standard Deviation of combination of risky portfolio and treasuries - 15.69% O Risky portfolio weight - 75.69% Standard Deviation of combination of risky portfolio and treasuries - 21.47% O o Risky portfolio weight - 85.07% Standard Deviation of combination of risky portfolio and treasuries - 17.43%

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