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utility function is U = E(r) 0.5A^2. Risk free rate :2%, risky portfolio expected return is 10%, standard deviation of 20%. 1. What is A

utility function is U = E(r) 0.5A^2. Risk free rate :2%, risky portfolio expected return is 10%, standard deviation of 20%.

1. What is A to make the investors prefer the risky portfolio than the risk free asset?

2.What is A to make the investors prefer the risk free asset than the risky portfolio?

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