If his risk aversion is 3 what is his optimal positing in


Assume you manage a risky portfolio with an expected return of 17% and a standard deviaiton of 27%. The tbill rate is 7%. Your client chooses to invest a proportion (y) of his portfolio in your fund and the rest (y-1) in the T-bill money market fund. If his risk aversion is 3, what is his optimal positing in the risky asset (y*)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: If his risk aversion is 3 what is his optimal positing in
Reference No:- TGS02811900

Expected delivery within 24 Hours