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2. Using sample average returns and standard deviations of the two investment strategies provided in class slides (S&P 500 and Volatility Strategy), calculate the certainty

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2. Using sample average returns and standard deviations of the two investment strategies provided in class slides (S&P 500 and Volatility Strategy), calculate the certainty equivalent risk- free rate using mean-variance utility. a) Assume the risk aversion coefficient equals 2. Vol Strategy S&P 500 Mean 9.9% 15.2% 9.7% 15.1% Stdev

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