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A portfolio has an expected rate of return of 15% and a standard deviation of 15%. The risk-free rate is 6%. An investor has tge
A portfolio has an expected rate of return of 15% and a standard deviation of 15%. The risk-free rate is 6%. An investor has tge following utility function: U = E(r) - (A/2) s^2. Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset?
A) 5
B) 6
C) 7
D) 8
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