What would be the investment proportion into risky


Suppose Optimal Risky Portfolio has the following characteristics: Rp = 12% and Rf = 3%, σp = 15%

What would be the investment proportion into Risky Portfolio and Risk Free security to achieve return of 10%?

What would be the St. Dev. of such final combination portfolio? (2 possible ways to calculate):

What is the optimal investment amount into Risky portfolio if investors Risk Aversion factor is 3?

What is the Sharpe Ratio or the Slope of the CAL?

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Financial Management: What would be the investment proportion into risky
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