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Suppose that an investor has a choice between four funds to invest in. However, combining funds in a new portfolio is not possible. These funds

image text in transcribed Suppose that an investor has a choice between four funds to invest in. However, combining funds in a new portfolio is not possible. These funds have the following characteristics. Which option will be her choice if her risk aversion coefficient is 4 ? Fund B Fund C Fund A Fund D Question 4 10pt How does your answer to the previous question change if the risk aversion coefficient is 8 instead? Fund C Fund B Fund D Fund A

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