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Business, 01.10.2021 07:40 adrielalvarez267

a fund has a capital of $100m. it’s investment opportunity set consists of a risky asset with expected return of 8%, and risk of 16%. the fund wishes to achieve an expected return of 12%. the borrowing rate for the fund is 5% and lending rate is 3%. what allocation by the fund will achieve its target of 12% expected return?

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