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suppose you are a money manager and are looking at the following 2 assets: asset A with expected return of 9% and std dev of
suppose you are a money manager and are looking at the following 2 assets: asset A with expected return of 9% and std dev of 30%; and asset B with expected return of 15% and std of 20%. the risk free rate is 3%. Without doing any calculation, if you had to invest all your monry in either asset A or B (but not a portfolio of the 2, nor the risk free rate), which would you pick? why? how would the andswer depend on your risk aversion?
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