Question: You've just decided upon your capital allocation for the next year, when you realize that you've underestimated both the expected return and the standard deviation

You've just decided upon your capital allocation for the next year,

when you realize that you've underestimated both the expected

return and the standard deviation of your risky portfolio by a

multiple of 1.05. Will you increase, decrease, or leave unchanged

your allocation to risk-free T-bills?

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