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2. The following information is available to two investors with degrees of aversion as 2 and 5: Security Expected Return Standard Deviation Fund P 15%

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2. The following information is available to two investors with degrees of aversion as 2 and 5: Security Expected Return Standard Deviation Fund P 15% 20% Fund Q 20% 30% Correlation coefficient 0.5 Find out the gains in quadratic utilities of these investors in the presence of a risk-free asset class providing a return of 8% when compared with investment without risk-free asset. 14

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