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Two assets have the following expected returns and standard deviations when the risk-free rate is 5%:An investor with a risk aversion of A = 3
Two assets have the following expected returns and standard deviations when the risk-free rate is 5%:An investor with a risk aversion of A = 3 would find that _________________ on a risk-return basis
.A. only asset A is 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
Why is C the answer? Explain and Show Work!
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