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Suppose that you have found the optimal risky combination using all risky assets available in...

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Accounting

Suppose that you have found the optimal risky combination using all risky assets available in the economy, and that this optimal risky portfolio has an expected return of 0.1 and standard deviation of 0.2. The T-bill rate is 0.05.

If your risk-return preferences are best described by the utility function in this class, with a risk-aversion coefficient of 5.2. What is the expected return on your optimal complete portfolio?

Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.

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