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Suppose two investors A and B have each a current portfolio M with Eru- 12% and am=1%. Suppose that both investors are facing two portfolios
Suppose two investors A and B have each a current portfolio M with Eru- 12% and am=1%. Suppose that both investors are facing two portfolios / and p such that Er, - 15%. Er = 17%, 0,=2.5%, and 0,=3.5%. If A chooses / and B chooses p, then we can say Choose the most accurate answer. Select one: O a. Both are risk lover, but A is more risk lover than B O b. Both are risk averse with the same degree c. Both are risk averse, but A is more averse than B d. A is risk averse and B is risk lover e. Both are risk averse, but B is more averse than A NEXT P
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