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- Consider that an investor can invest in three assets: Risk-free asset (T-Bill) rf=3% Risky...

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- Consider that an investor can invest in three assets: Risk-free asset (T-Bill) rf=3% Risky Asset 1 (Stock) E(rS)=10%,S=19% Risky Asset 2 (Bond) E(rB)=5%,B=8% Correlation coefficient _BS=0.2 - The investor's risk aversion is given by A=5 What is the investors' optimal complete portfolio? Hints: The question requires to determine the allocation percentages for the risk-free asset, bonds. Keep in mind that the assets in this question are identical to those used in the in-class However, the investor's risk aversion level has increased to 5 instead of 4 . If you atten - Consider that an investor can invest in three assets: Risk-free asset (T-Bill) rf=3% Risky Asset 1 (Stock) E(rS)=10%,S=19% Risky Asset 2 (Bond) E(rB)=5%,B=8% Correlation coefficient _BS=0.2 - The investor's risk aversion is given by A=5 What is the investors' optimal complete portfolio? Hints: The question requires to determine the allocation percentages for the risk-free asset, bonds. Keep in mind that the assets in this question are identical to those used in the in-class However, the investor's risk aversion level has increased to 5 instead of 4 . If you atten

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