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You are a risk averse investor with a risk aversion of A = 3. You are currently considering between investing in Treasury bills which pay
You are a risk averse investor with a risk aversion of A = 3. You are currently considering between investing in Treasury bills which pay 4% per year and a risky portfolio with a standard deviation of 24%. You will only invest in the risky portfolio if the expected return is at least
a) 8.67% b) 9.84% c) 12.64% d) 14.68% e) None of the above
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