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You invest $100 in a risky asset with an expected rate of return of 15% and...

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Finance

You invest $100 in a risky asset with an expected rate of returnof 15% and a standard deviation of 15% and a T-bill with a rate ofreturn of 5% and E (U)= E(r) - 0.5A?2. Suppose your risk aversionfactor is 5. What weight would you assign to the risk-free asset?A) 0.8889. B) 0.1111. C) 0.2457. D) 0.2111.

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