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Using sample average returns and standard deviations of the two investment strategies provided in class slides (S&P 500 and Volatility Strategy), calculate the certainty equivalent

Using sample average returns and standard deviations of the two investment strategies provided in class slides (S&P 500 and Volatility Strategy), calculate the certainty equivalent risk-free rate for the Volatility Strategy.

Assume mean-variance utility with risk aversion coefficient equal to 2.

Enter your answer in percentage points with two decimal spaces

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