What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

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What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

Consider the following information about a risky portfolio that you manage, and a risk-free asset: E(RP) – 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? (Round your answer to 2 decimal place. Omit the ‘%” sign in your response.) Risky portfolio Risk-free asset b. What will be the standard deviation of the rate of return on her portfolio? (Do not round intermediate calculations. Round your answer to 1 decimal place. Omit the “%” sign in your response.) Standard deviation c. Another client wants the highest return possible subject to the constraint that you limit his standard deviation to be no more than 12%. Which client is more risk-averse? O First client Second client

What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

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What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

What proportion should she invest in the risky portfolio, P, and what proportion in the risk-free asset?

Best Available Writers