An endowment manager is presented with a risky portfolio that has an expected rate of return of 15% and a standard deviation of 22%. The risky portfolio includes the following investments in the given proportions. 

MSFT 38% 

Apple 47% 

FB 15% 

The endowment manager estimates its clients' risk aversion coefficient to be 5 and will make its allocation decision between the risky portfolio above and a riskless alternative yielding 3.3% in a utility maximizing manner. Ultimately what proportion of the endowment will be invested in FB?

Answer rating: 100% (QA)

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