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Consider a risky portfolio that offers a rate of return at 1 5 % per year with a Standard deviation of 2 0 % per

Consider a risky portfolio that offers a rate of return at

15 %

per year with a Standard deviation of

20 %

per year. Suppose an investor with mean variance performances is indifferent between investing in the risky portfolio and investing in a risk

-

free asset that earns

8 %

per year

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