Question: Using the information from problem 4, the investor decides that the optimal weight to invest in the risky asset y* calculated in problem 4 seems
Using the information from problem 4, the investor decides that the optimal weight to invest in the risky asset y* calculated in problem 4 seems too low, and so the investor decides to invest a higher percent of the complete portfolio, namely 50%, in the risky asset to raise both the risk and the expected return for the complete portfolio.
What is the expected return for the non-optimal complete portfolio with this increased level of risk?
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