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A. A portfolio has an expected return of 20% and standard deviation of 30%. T-bills offer a safe rate of return of 7%. Would an

A. A portfolio has an expected return of 20% and standard deviation of 30%. T-bills offer a safe rate of return of 7%.

Would an investor with risk aversion parameter A = -4 prefer to invest in T-bills or the risky portfolio ? What if A = 4. Please write a detailed answer

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