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Rachel currently owns a riskless bond with a return of 4.9%. She would be just as happy owning a risky asset with an expected return
Rachel currently owns a riskless bond with a return of 4.9%. She would be just as happy owning a risky asset with an expected return of 16.5% and a return variance of 17.0%. What is Rachel's coefficient of risk aversion? Please give your answer to at least two decimal places.
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