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Suppose that expectations for 2012 about the S&P 500 index and the T-bill rate are the same as they were in 2002, but you actually

Suppose that expectations for 2012 about the S&P 500 index and the T-bill rate are the same as they were in 2002, but you actually find that a smaller proportion of investors’ capital is invested in T-bills today than in 2002. What can you conclude about the change in risk tolerance over the years since 2002?

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