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An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 14% and a standard deviation of return of 24.0%.

Stock B has an expected return of 10% and a standard deviation of return of 4%. The correlation coefficient between the returns of A and B is 0.50. The risk-free rate of return is 8%.

The proportion of the optimal risky portfolio that should be invested in stock A is

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92794309

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