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Today is your first day as an analyst at PJ Stanley. Your boss gives you to rank 4 of her clients by their coefficient of
Today is your first day as an analyst at PJ Stanley. Your boss gives you to rank 4 of her clients by their coefficient of risk aversion A. She tells you that (a) Ms. Stockton is an all equities investor and a risk taker; (b) T. Bill is very risk averse and he only invests in US Treasuries; (c) James Bond likes to have income but prefers not to take too much risk, so he only invest in government bonds and investment grade corporate bonds; and (d) Bo Maverick loves risk, buying on margin, shorting stocks and investing in distressed and illiquid assets. A possible set of A coefficients for Stockton, T. Bill, Bond and Bo could be
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