Suppose that we are given that the current value of an investor’s indexed portfolio is $2 000 and the desired portfolio floor is also $2 000, T = 3months, = 4% per period. The value of the indexed...

Suppose that we are given that the current value of an investor’s indexed portfolio is $2 000 and the desired portfolio floor is also $2 000, T = 3months,
= 4% per period. The value of the indexed portfolio is expected to go up by 20% or fall by 16% per period for a given investment period. Calculate the allocations between the risk-free and risky assets based on the dynamic asset allocation (DAA) strategy.