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Your broker offers two risky funds for your but you can only choose one to invest in. You can also invest in T-bills. Given the
Your broker offers two risky funds for your but you can only choose one to invest in. You can also invest in T-bills. Given the data below, what allocation should you follow? Assume that your risk aversion coefficient is 3 Fund B 12% 32% T-Bill 2% Fund A Er 16% o 40% O 12% of your savings in Fund A; 88% in T-bills O 33% of your savings in Fund B: 67% in T-bills O 29% of your savings in Fund A: 71% in T-bills 10% of your savings in Fund B; 90% in T-bills
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