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You want to allocate your money between the risk free asset (1.7%), a fixed income fund...

You want to allocate your money between the risk free asset (1.7%), a fixed income fund ( E(B)=8.9%, Volatility(B)=11%), and a diversified stock fund ( E(S)=13%, Volatility(S)=20%). The correlation between the two risky funds is 0.35. When creating the optimal risky portfolio, how much weight in percentage should you invest in the diversified stock fund?

{Give your answer as a percentage with 2 decimals, e.g., if the answer is 0.5345224 (or 53.45224%) , enter 53.45 as your answer.}

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ANSWER : 28.80%

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