There is a riskless asset with a return of 0.020, and a risky asset with an...

There is a riskless asset with a return of 0.020, and a risky asset with an expected return of 0.363 and standard deviation of 0.301. If you were building a portfolio for an investor with a risk aversion of A=2.6, what proportion of their assets would you invest in the risky asset?

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1.Suppose you have a riskless asset with a rate of return of 0.05 and a risky...

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Risky Asset 1 Risky Asset 2 Expected Return 0.11 .15 Standard Deviation 0.28 .88 coefficient of correlation ρ between these two assets is equal to .009, and the risk-free rate is 3.8%. 1. If you wished to construct the optimal risky portfolio using these two assets, what percentage this portfolio would consist of Asset 1? 2. What is the expected return of the portfolio from question 1? 3. What is the standard deviation of the portfolio from question 1? 4....

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Table.1 Risky Asset 1 Risky Asset 2 Expected Return 0.12 .16 Standard Deviation 0.29 .89 The coefficient of correlation ρ between these two assets is equal to .009, and the risk free rate is 3.8%. 1) If you wished to construct the optimal risky portfolio using these two assets, what percentage this portfolio would consist of Asset 1? 2) What is the expected return of the portfolio from question 1? 3) What is the standard deviation of the portfolio from...

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You invest $100 in a risky asset with an expected rate of return of 0.13 and...

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