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Shawn and Gus - Shawn allocates 80% to the risky asset - Gus allocates 20% to the risky asset S&P: mean = 0.10 stddev =

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Shawn and Gus - Shawn allocates 80% to the risky asset - Gus allocates 20% to the risky asset S&P: mean = 0.10 stddev = 0.20 T-Bill mean = 0.02 1. Who is more risk averse? 2. What is each investor's expected return? 3. What is each investor's standard deviation? 4. What is each investor's Sharpe ratio? 5. What do your answers tell you about the risk-return tradeoff

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