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Ch 6 Problem Sets: 5 5 . Consider a portfolio that offers an expected rate of return of 1 2 % and a standard deviation

Ch 6 Problem Sets: 5
5. Consider a portfolio that offers an expected rate of return of 12% and a standard deviation of 18%. T-bills offer a risk-free 7% rate of return. What is the maximum level of risk aversion for which the risky portfolio is still preferred to T-bills?
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