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Known: Risk Aversion coefficient = 4 Expected Return (ER) = 0

Finance Nov 03, 2021

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?

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