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Consider a portfolio that offers an expected rate of return of 14% and a standard deviation of 32%. T-bills offer a risk-free 3% rate of

Consider a portfolio that offers an expected rate of return of 14% and a standard deviation of 32%. T-bills offer a risk-free 3% rate of return. What is the maximum level of risk aversion for which the risky portfolio is still preferred to bills?

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2.15

2.88

2.56

2.22

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