Question: If the Capital Allocation Line is given by the E(r) = 0.7sigma + 0.004, what is the expected return of Eric's optimal complete portfolio? Eric's

If the Capital Allocation Line is given by the E(r) = 0.7sigma + 0.004, what is the expected return of Eric's optimal complete portfolio? Eric's risk-aversion index is A=3.54. Use the standard utility function from the textbook.

Report a % with two decimals. If your answer is 3.56%, enter "3.56"

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