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Asset A has an expected return of 20% and a reward-to-variability ratio of 0.4. Asset B has an expected return of 15% and a reward-to-variability

Asset A has an expected return of 20% and a reward-to-variability ratio of 0.4. Asset B has an expected return of 15% and a reward-to-variability ratio of 0.35. A risk-averse investor would prefer a portfolio using the risk-free asset and ______.

a. Asset A

b. Asset B

c. No risky asset

d. Answer cannot be determined given the data

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