In: Finance
Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 25%. The T-bill rate is 3% . Suppose your risky portfolio includes the following investments in the given proportions.
Dell |
50% |
Apple |
30% |
HP |
20% |
What are the investment proportions of your client’s overall portfolio, including the position in T-bills, if your client's risk aversion coefficient is 3?
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