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Order the following (risk, return) pairs from least to most favourable, assuming the perspective of a rational and risk-averse investor: (2,2),(2,3) and (4,2). Risk is
Order the following (risk, return) pairs from least to most favourable, assuming the perspective of a rational and risk-averse investor: (2,2),(2,3) and (4,2). Risk is measured in standard deviations and return in percentage. HINT: Imagine a scatter diagram with standard deviation on the x-axis and return on the y-axis.
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