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6. You know an investor with a risk aversion parameter value of 6. The market...

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6. You know an investor with a risk aversion parameter value of 6. The market tangency portfolio hasex return of 10% and standard deviation of 15%. The risk-free rate is 4%. What percentage of this investor's investment should be allocated to risk-free asset for the optimal investment? a) 36% b) 56% c) 76% d) 85% e) None of the above 7. "I nvestment banks helps firms in their IPO. In the process they also help them in filing with SEC and in roadshow." The statement above is a) True b) False 8. Which of the following is an example of time-weighted average return? a) Arithmetic average return b) Geometric average return c) Dollar-weighted average returrn d) Annual and quarterly returns e) None of the above

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