Your client would like to invest $500,000. You will allocate her money across the following three assets:

The correlation between JB shares and Rio shares is 0.

According to your estimates, her risk-aversion parameter (A) is 2. In dollars, how much will you advise her to invest in each of these three assets? Show your calculations.

Asset JB Hifi shares Rio Tinto shares Risk-free bonds Eri] 10% 12% o[ri] 25% 30% 5%