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Miguel required a minimum risk premium of 6%, that is, instead of holding a risk-free portfolio, he holds a portfolio with an annualized standard deviation
Miguel required a minimum risk premium of 6%, that is, instead of holding a risk-free portfolio, he holds a portfolio with an annualized standard deviation of 15% without being worse off.
The question here is that what exactly is his coefficient of relative risk aversion or what we call as the RRA?
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