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Arlo is risk averse with mean variance utility and coefficient of risk aversion A=2. Which of the following portfolios would Arlo prefer? a. A risk
Arlo is risk averse with mean variance utility and coefficient of risk aversion A=2. Which of the following portfolios would Arlo prefer?
a. A risk free portfolio with return of 6%.
b. =7%,=10%
c. =10%,=20%
d. =15%,=30%
e. They all provide the same utility.
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