Question: The expected return on a risky asset is 5% and standard deviation is 12%. The risk free return in 2%. a) Calculate the available Price

The expected return on a risky asset is 5% and standard deviation is 12%.

The risk free return in 2%.

a) Calculate the available Price of Risk Ratio for the asset

b) Calculate weights of the assets in a optimal Complete Portfolio, given that the investors required

Price of Risk Ratio is 3,5

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