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There are two assets, one riskfree and the other risky. The riskfree rate is 7%. The risky assets has an expected return of 15% and
There are two assets, one riskfree and the other risky. The riskfree rate is 7%. The risky assets has an expected return of 15% and a standard deviation of 22%. A risk averse investor optimally allocates 69% of has investment in the risky asset. Then his risk aversion parameter A is(keep 2 decimal places)
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