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Business, 23.07.2020 02:01 edjiejwi

Consider the following information about a risky portfolio that you manage and a risk-free asset: E(rP) = 11%, σP = 15%, rf = 5%. a. Your client wants to invest a proportion of her total investment budget in your risky fund to provide an expected rate of return on her overall or complete portfolio equal to 8%. What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

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