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Example 5 You are given the following information about three potential hotel investments. Hotel Return Risk (Std. Dev.) Hotel X 12% 7% Hotel Y 20%

Example 5 You are given the following information about three potential hotel investments. Hotel Return Risk (Std. Dev.) Hotel X 12% 7% Hotel Y 20% 19% Hotel Z 14% 10% Which one of these investments would a risk-averse investor choose? Why

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