If the client wants the expected return of her total


Assume you are a financial adviser, and one of your clients needs your help. The client wishes to invest part of her capital in a risky fund with an expected return of 16% and standard deviation of 15%, and the rest of her capital in the risk-free rate, which is 3%. If the client wants the expected return of her total investments to be 7%, what percentage of her capital must be invested in the risky fund?

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Financial Management: If the client wants the expected return of her total
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