Question: After extensive analysis, Alpha Fund has identified three assets, P, Q and R which it believes will exhibit ongoing alpha. It has determined the

After extensive analysis, Alpha Fund has identified three assets, P, Q and

After extensive analysis, Alpha Fund has identified three assets, P, Q and R which it believes will exhibit ongoing alpha. It has determined the following reward-to-risk ratios for each of the assets: Asset P R Reward to Risk Ratio 0.90 0.18 0.72 Using the Treynor Black model, how would Alpha Fund weight its active portfolio?

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