Question: 3. Optimal portfolio You are presented with two assets, a risky asset with expected return E[R] 15% and standard deviation of the return 0 =

3. Optimal portfolio You are presented with two assets, a risky

3. Optimal portfolio You are presented with two assets, a risky asset with expected return E[R] 15% and standard deviation of the return 0 = 22%, a riskless asset with return R; = 7%. V. If an investor's coefficient of risk aversion is A = 3, what proportion of your funds should be allocated to the risky asset

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