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(8) A T-bill pays 6% rate of return. Would risk averse investors invest in a risky portfolio that pays 12% return with a probability of

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(8) A T-bill pays 6% rate of return. Would risk averse investors invest in a risky portfolio that pays 12% return with a probability of 40% or 2% return with a probability of 60%7 A) No, because the risk premium is too large to believe B) No, because they are not rewarded with a risk premium C) Yes, because they are rewarded with a risk premium D) Cannot be determined

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