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Assume a risk aversion score of A = 4 and a utility score equation: U =...

Assume a risk aversion score of A = 4 and a utility score equation: U = E(r) - .50*A*(sigma^2); where sigma = standard deviation and sigma^2 = the variance.)

You have a risk-free investment with a return of Rf = .06; and a risky investment with an E(r) = .23 and sigma = .30. If Y* = [ E(r)-Rf ]/(A*sigma^2), what percent of your money would you invest in the risky asset to maximize your utility score? Show your work.

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