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Mathematics, 15.04.2020 04:40 Sk8terkaylee

The optimal risky portfolio has an expected return of 12.8% and a standard deviation of 13.79%. Rik has a risk aversion of 3. The risk free rate is 4%. The borrowing rate is 6%. How much should he allocate to the optimal risky portfolio?
a. 0.77
b. 1.19
c. -0.30
d. 1.54

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