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Two assets have the following expected returns and standard deviations when the risk-free rate is 5% Asset A E(A) = 10% CA = 20% Asset

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Two assets have the following expected returns and standard deviations when the risk-free rate is 5% Asset A E(A) = 10% CA = 20% Asset B EGB) = 15% oB = 27% An investor with a risk aversion of A = 6 would find that on a risk-return basis. A. only asset Ais acceptable B. only asset B is acceptable C. neither asset A nor asset B is acceptable D. both asset A and asset B are acceptable

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