For all questions involving duration, use continuously compounded yields and the formulas explained in the slides, not those in the textbook. Question 10 1 pts Look at the data in the table below on the average excess return of the U.S. equity market and the standard deviation of that excess return (in percentage points). Suppose that the U.S. market is your risky portfolio. Average Annual Returns U.S. Equity Market U.S. Equity Market 1-Month T-Bills Excess Return Standard Deviation Period Sharpe Ratio 20.59 1926-2015 1992-2015 1970-1991 1948-1969 1926-1947 11.77 10.79 12.87 14.14 9.25 3.47 2.66 7.54 2.70 0.91 8.30 8.13 5.33 11.44 8.33 18.29 18.20 17.67 27.99 0.40 0.44 0.29 0.65 0.30 Table 6.7 Average annual return on stocks and 1-month T-bills; standard deviation and Sharpe ratio of stocks over time If your risk-aversion coefficient is A = 4 and you believe that the 1970-1991 period is representative of future expected performance, what fraction of your portfolio should be allocated to equity (in percentage points, round to the first decimal place)