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Following information is available to two investor with degree of aversion as 2 and 5 Security Expected Return Standard Deviation Fund P 15% 20% Fund

Following information is available to two investor with degree of aversion as 2 and 5

Security Expected Return Standard Deviation

Fund P 15% 20%

Fund Q 20% 30%

Correlation coefficient .5

Find out the gains in quadratic utilities of those Investor in the presence of a risk free asset class providing a return of 8% when compared with investment without risk free Assets

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