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In a financial market, the Maximum Sharpe Ratio Portfolio (MSRP) has an expected return of 15% and a standard deviation of 20%. Given a risk-free
In a financial market, the Maximum Sharpe Ratio Portfolio (MSRP) has an expected return of 15% and a standard deviation of 20%. Given a risk-free rate of 5%, what should be the average risk aversion A of investors when the net borrowing in the economy is zero (amount borrowed = amount lent)? Please convert percentage to number (i.e. 10%-> 0.1)
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