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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.

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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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