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Homework answers / question archive / Known: Risk Aversion coefficient = 4 Expected Return (ER) = 0
Known:
Risk Aversion coefficient = 4
Expected Return (ER) = 0.05
Std Dev. = 0.034
We have five assets to invest in and $100,000. We know that the risk aversion coefficient, A = 4, and the annual risk-free rate = 2%. Calculate the dollar amounts allocated to each of the selected assets and the risk-free asset.
How would u go about solving this in excel?