Question
An investor is indifferent between Vanguard Total China ETF (Ticker: 83169) and Vanguard FTSE Europe ETF (Ticker: VGK). The expected return and standard deviation of
An investor is indifferent between Vanguard Total China ETF (Ticker: 83169) and Vanguard FTSE Europe ETF (Ticker: VGK).
The expected return and standard deviation of the 83169 ETF are 20 percent, and 44 percent respectively.
The expected return and standard deviation of the VGK ETF are 12.5 percent and 40.5 percent.
What is the risk-aversion parameter of this investor?
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J. Hughes, Arshad Ahmad, Jordan Fortino
6th Canadian edition
1259453146, 978-1259453144
