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You are given the following information. Asset E[ri] o[ri] Rabbit Tech shares 14% 20% Turtle Industrial shares 4% 6% Risk-free asset 5% Given that Turtle
You are given the following information. Asset E[ri] o[ri] Rabbit Tech shares 14% 20% Turtle Industrial shares 4% 6% Risk-free asset 5% Given that Turtle has an expected return less than the risk-free rate despite having positive standard deviation, would a risk-averse investor take a long position in Turtle? Explain your answer. You can use a numerical example or graphical example to support your argument (though you don't have to). You are given the following information. Asset E[ri] o[ri] Rabbit Tech shares 14% 20% Turtle Industrial shares 4% 6% Risk-free asset 5% Given that Turtle has an expected return less than the risk-free rate despite having positive standard deviation, would a risk-averse investor take a long position in Turtle? Explain your answer. You can use a numerical example or graphical example to support your argument (though you don't have to)
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