Question
Question 14. You are trying to create an Optimal Complete Portfolio for your client. To do this you need to estimate the clients Risk Aversion.
Question 14.
You are trying to create an Optimal Complete Portfolio for your client. To do this you need to estimate the clients Risk Aversion. You ask a number of questions, comparing different investment alternatives and conclude that the following two alternatives are equally attractive for the client
| E(r) | Stdev | |
| Alt 1 | 12% | 20% |
| Alt 2 | 5% | 7% |
a) what is the clients risk aversion?
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The Social Media Handbook For Financial Advisors
Authors: Matthew Halloran
1st Edition
1118208013, 978-1118208014
