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Risk aversion suggests that investors prefer assets with both high risk and low expected returns True False QUESTION 8 American Standard Corp. (AS) offers the

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Risk aversion suggests that investors prefer assets with both high risk and low expected returns True False QUESTION 8 American Standard Corp. (AS) offers the following returns next year. What is the expected rate of return? (round to two decimals. Your answer should be in the form (ww.## %) and should include a negative if appropriate) Scenario Probability AS returns Boom 30% 2% Normal 40% 7% economy Recession 30% 5%

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