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Assume that an investor has been offered three choices: the first one has a return of 10% and a risk of 12%, a second one
Assume that an investor has been offered three choices: the first one has a return of 10% and a risk of 12%, a second one has a 13% return and a risk of 17%, and the third one has 12% return and a risk of 30%. (4 Marks) What choice will the investor choose if he is a) Risk-Averse b) Risk Neutral c) Risk Lover And why?
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