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You want to allocate your money between the risk free asset (0.019), a fixed income fund ( E(B)=0.082, Volatility(B)=0.13), and a diversified stock fund (
You want to allocate your money between the risk free asset (0.019), a fixed income fund ( E(B)=0.082, Volatility(B)=0.13), and a diversified stock fund ( E(S)=0.114, Volatility(S)=0.17). The correlation between the two risky funds is 0.43. When creating the optimal risky portfolio, how much weight in decimals should you invest in the diversified stock fund? Please answer as decimal [*.000]
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