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Problem 6-5 Consider a portfolio that offers an expected rate of return of 10% and a standard deviation of 23%. T-bills offer a risk-free 5%
Problem 6-5 Consider a portfolio that offers an expected rate of return of 10% and a standard deviation of 23%. T-bills offer a risk-free 5% rate of return.
What is the maximum level of risk aversion for which the risky portfolio is still preferred to T-bills? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Maximum level of risk aversion must be: ________
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