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Treasury bills are paying a 7% rate of return. A risk-averse investor with a risk aversion of A = 2 should invest entirely in a

Treasury bills are paying a 7% rate of return. A risk-averse investor with a risk aversion of A = 2 should invest entirely in a risky portfolio with a standard deviation of 27% only if the risky portfolio's expected return is at least __________.

a. 10.79%

b. 7.58%

c. 14.29%

d. 21.58%

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