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Bob is your clients and you advise him in his portfolio selections and investment decisions....

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Finance

Bob is your clients and you advise him in his portfolio selections and investment decisions. According to your analysis, Bob has a degree of risk aversion of 4. The risk-free rate is currently 3%, the expected return on the market portfolio is 9.6%, and the volatility of the market portfolio is 17%.

Advise Bob on his optimal capital allocation by giving the weight (in percentage) to put in the risky market portfolio.

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