Question
Stock A has an expected return of 20% and a standard deviation of 8%. Ken is indifferent between stock A and a risk-free investment that
Stock A has an expected return of 20% and a standard deviation of 8%. Ken is indifferent
between stock A and a risk-free investment that offers 12% return. On the other hand, Nick is
indifferent between stock A and a risk-free investment that offers 9% return. Other things being
equal, who is more likely to invest in a lower risk portfolio? Why?
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Day Trading Strategies And Risk Management
Authors: Richard N. Williams
1st Edition
979-8863610528
