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You are indifferent (derive the same utility) between the following investments: An investment with a sure return of 100 $ An investment with an expected
- You are indifferent (derive the same utility) between the following investments:
An investment with a sure return of 100 $
An investment with an expected outcome of 200$ and standard deviation of 20$
An investment with an expected outcome of 300$ and standard deviation of 40$
If you drew an indifference curve between risk and return, how would it look like?What does it say about the nature of your risk aversion?
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