You invest 100 in a risky asset with an expected rate of


You invest $100 in a risky asset with an expected rate of return of 15% and a standard deviation of 15% and a T-bill with a rate of return of 5% and E (U)= E(r) - 0.5Aσ2. Suppose your risk aversion factor is 5. What weight would you assign to the risk-free asset?

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Financial Management: You invest 100 in a risky asset with an expected rate of
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