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So,You can invest in a T-bill with a risk-free rate of return of 0.04, and in an optimal risky portfolio with an expected rate of

So,You can invest in a T-bill with a risk-free rate of return of 0.04, and in an optimal risky portfolio with an expected rate of return of 0.16 and a standard deviation of 0.18. However, your target return is 0.09, and you are a rational utility-optimizing investor with preferences characterized by the quadratic utility function discussed in class. What does this imply about your level of risk aversion?

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