Illustrate what proportion of your complete portfolio

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Reference no: EM13122282

Q. You invest $1,000 in a complete portfolio. The complete portfolio is composed of 1 risky asset with an expected rate of return of 16% and standard deviation of 20% and a T-bill with a rate of return of 6%.

If you want your complete portfolio to have a std deviation of 9%, illustrate what proportion of your complete portfolio should be invested in the risky portfolio?

Reference no: EM13122282

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