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Your financial adviser provided you with the following data about combinations of a Technology and a Utility fund: E(r) weight invested in Technology fund weight
Your financial adviser provided you with the following data about combinations of a Technology and a Utility fund: E(r) weight invested in Technology fund weight invested in Utility fund ORP 24 60 30 70 MVP 13 33 40 60 Your risk aversion coefficient is A=4 and the risk free rate is 2%. If you have $1000, how much money do you need to invest in the Technology fund to maximize your utility?
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