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A portfolio has an expected rate of return of 0.15 and a standard deviation of 0.15 . The risk-free rate is 6 percent. An investor

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A portfolio has an expected rate of return of 0.15 and a standard deviation of 0.15 . The risk-free rate is 6 percent. An investor has the following utility function: U=E(r)(A/2)s2. Which value of A makes this investor prefer the risky portfolio over the risk-free asset? a. 5 b. 8 c. 9 d. 10

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