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6. Suppose an investor has preferences represented by w- u(w) 1-7 In the market there are two assets: a risky asset whose return can be

6. Suppose an investor has preferences represented by w- u(w) 1-7 In the market there are two assets: a risky asset whose return can be either low, ri, or high, r2, with probabilities 7 and 1 7; a risk-free asset with return rf. Suppose r

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