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Assume the risk-free rate is 4%. You are a financial advisor, and must choose one of the funds below to recommend to each of your
Assume the risk-free rate is 4%. You are a financial advisor, and must choose one of the funds below to recommend to each of your clients. Whichever fund you recommend, your clients will then combine it with risk-free borrowing and lending depending on their desired level of risk. (Click on the following icon 2 in order to copy its contents into a spreadsheet.) Which fund would you recommend (without knowing your client's risk preferences)
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