Capital must be invested in risky fund

Assignment Help Risk Management

Reference no: EM131947357

Assume you are a financial adviser, and one of your clients needs your help. The client wishes to invest part of her capital in a risky fund with an expected return of 13% and standard deviation of 24%, and the rest of her capital in the risk-free rate, which is 3%. If the client wants the expected return of her total investments to be 7%, what percentage of her capital must be invested in the risky fund?

Reference no: EM131947357

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