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For an investor with risk aversion index A=4, which portfolio is preferable? A. Risk-free asset with an expected return of 4% B. Portfolio B with
For an investor with risk aversion index A=4, which portfolio is preferable?
A. Risk-free asset with an expected return of 4%
B. Portfolio B with an expected return of 10% and standard deviation of 17%
C. Portfolio C with an expected return of 12% and standard deviation of 20%
D. Portfolio A with an expected return of 8% and a standard deviation of 13%
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