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A client is considering two investments: 1) a portfolio with a return = 12% and risk = 25% and 2) US Treasury Bills with a

A client is considering two investments:

1) a portfolio with a return = 12% and risk = 25%

and

2) US Treasury Bills with a return = 5%.

What risk aversion coefficient (A) would make the client indifferent between the two investment alternatives?

Group of answer choices

2.8

5.6

1.12

Undefined - the investor would always select the riskier portfolio

2.24

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