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Plz give me the explainations in very detail can't understand it, better to illustrate step by step thanks You are a risk-averse investor. Portfolio A

Plz give me the explainations in very detail can't understand it, better to illustrate step by step thanks

You are a risk-averse investor. Portfolio A has E(r) = 12% and = 18%. Portfolio B has = 21%, and has end-of-year cash flows of either $84,000 or $144,000 with equal probability. At what price for portfolio B would you be indifferent between A and B?

A.

$100,000

B.

$101,786

C.

$84,000

D.

$121,000

E.

None of these

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