Q.2503 A pension fund wants to allocate $300 million to a pool of active managers so as to maximize the information ratio of the fund subject to an overall tracking error volatility (TEV) of 4%. The table below provides more information:

	TEV	Information Ratio
Manager 1	6.0%	0.60
Manager 2	8.0%	0.40
Index	0.0%	0.00
Portfolio	4.0%	0.72

Assuming that the excess returns of the managers are independent of each other, the optimal allocation for Manager 1 is equal to: