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Suppose a stock fund has an expected return of 1 2 % and a standard deviation of 2 0 % . The T - bill

Suppose a stock fund has an expected return of 12% and a
standard deviation of 20%. The T-bill rate is 3%, while the
borrowing rate faced by investors is 6%.
There are two investors Mary and Michael with coefficients of
risk aversion 5 and 1, respectively.
rf=3%
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