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The expected return of the S&P 500 = 11% and the risk = 22%. The risk...

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Finance

The expected return of the S&P 500 = 11% and the risk = 22%.The risk free rate = 5%. Assume you have a very, very highly riskaverse person whose A = 1,000. How much of the person’s wealthwould be in stocks and how much in T-Bills?

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The expected return of the S&P 500 = 11% and the risk = 22%.The risk free rate = 5%. Assume you have a very, very highly riskaverse person whose A = 1,000. How much of the person’s wealthwould be in stocks and how much in T-Bills?

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