The alpha of an active portfolio is 1%. The expected return on the market index is 16%. The variance of the return on the market portfolio is 4%. The nonsystematic variance of the active portfolio is 1%. The risk-free rate of return is 8%. The beta of the active portfolio is 1.05. The optimal proportion to invest in the active portfolio is __________.

Security Analysis, Portfolio Management, and Financial Derivatives covers the many topics of modern investment analysis.

In finance, Security analysis is the evaluation and assessment of stocks or securities to determine their investment potential.

Investment management is the handling of financial assets and other investments. It is more than buying and selling investments. The management part includes devising a short- or long-term strategy for acquiring and disposing of portfolio holdings. It can also include banking, budgeting, and tax services and duties, as well.