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Assume an investor with the following utility function: U = E ( r ) 0.60( s 2 ). To maximize her expected utility, she would
Assume an investor with the following utility function: U = E(r) 0.60(s2). To maximize her expected utility, she would choose the asset with an expected rate of return of _______ and a standard deviation of ________, respectively.
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12%; 20%
8%; 10%
10%; 15%
10%; 10%
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