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Mr Brij Bhushan has two investment options before him. Portfolio M offers risk-free expected rehis 8 per cent. Portfolio N, which offers an expected return

Mr Brij Bhushan has two investment options before him. Portfolio M offers risk-free expected rehis 8 per cent. Portfolio N, which offers an expected return of 24 per cent has standard deviation of 25 per om His risk avenion index is 4 Given these parameters what is the rational choice for him? What is the naxi level of risk aversion for which he will continue to prefer the risky portfolio?

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