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Business, 14.02.2020 02:28 ryleerose255

Bob is your clients and you advise him in his portfolio selections and investment decisions. According to your analysis, Bob has a degree of risk aversion of 3.5. The risk-free rate is currently 3%, the expected return on the market portfolio is 7.2%, and the volatility of the market portfolio is 17%. Advise Bob on his optimal capital allocation by giving the weight (in percentage) to put in the risky market portfolio.

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