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

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 3.1. The risk-free rate is currently 2%, the expected return on the market portfolio is 8.7%, and the volatility of the market portfolio is 19%.

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

{Give your answer as a percentage with 2 decimals, e.g., if the result of your calculations is 0.345224 (or 34.5224%) , enter 34.52 as your answer.}

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jeff jeffy answered 2 years ago

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

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