Question: e ) Using the analytical expression, compute the fraction of their wealth that the two investors should invest in the risky portfolio. ( Now ,
e Using the analytical expression, compute the fraction of their wealth that the two investors should invest in the risky portfolio. Now you should be able to pinpoint the exact point within the range identified in the earlier question. Whose optimal portfolio A or A investor has a higher weight on the risky portfolio? Are the results consistent with your expectation? Explain
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