Suppose there are three uncorrelated risky assets. Each risky asset has variance equal to 1, and...

  

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Suppose there are three uncorrelated risky assets. Each risky asset has variance equal to 1, and the mean return values for assets 1, 2, and 3 are: • F1 = 0.10 72 = 0.20 T3 = 0.30 Now assume there is a risk-free asset with rate rf = 0.05. The one-fund theorem states that there is a single fund F of risky assets such that any efficient portfolio can be constructed as a combination of the fund Fand the risk-free asset. What is the weight wi of asset 1 corresponding to the single fund F? Please round your numerical answer to two decimal places. Suppose there are three uncorrelated risky assets. Each risky asset has variance equal to 1, and the mean return values for assets 1, 2, and 3 are: • F1 = 0.10 72 = 0.20 T3 = 0.30 Now assume there is a risk-free asset with rate rf = 0.05. The one-fund theorem states that there is a single fund F of risky assets such that any efficient portfolio can be constructed as a combination of the fund Fand the risk-free asset. What is the weight wi of asset 1 corresponding to the single fund F? Please round your numerical answer to two decimal places.

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