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The expected rate of return and the standard deviation of a portfolio are of 10%, respectively 16%, while the risk-free rate of return on the
The expected rate of return and the standard deviation of a portfolio are of 10%, respectively 16%, while the risk-free rate of return on the market is 2%. What is the maximum level of risk aversion for which the risky portfolio is still preferred to risk-free portfolio?
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The maximum level of risk aversion can be determined by calculating the portfolios Sharpe ratio and ...
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
