An investor wants to form a portfolio with an expected return of 10% per year by investing in a risky asset with an expe

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An Investor Wants To Form A Portfolio With An Expected Return Of 10 Per Year By Investing In A Risky Asset With An Expe 1 (26.72 KiB) Viewed 16 times

An investor wants to form a portfolio with an expected return of 10% per year by investing in a risky asset with an expected return of 14% per year and an expected return standard deviation of 25% per year. If the risk-free interest rate is 5% per year, what percent of the portfolio should he invest in the risky asset? 1) 66.4% 2) 62.7% 3) 55.6% 4) 51.9% 5) 41.7%