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You should recognize that basing a decision solely on expected returns is appropriate only for risk neutral individuals. Because your client, like most people, is
You should recognize that basing a decision solely on expected returns is appropriate only for risk neutral individuals. Because your client, like most people, is riskaverse, the riskiness of each alternative is an important aspect of the decision. One possible measure of risk is the standard deviation of returns.
Calculate this value for each alternative and fill in the blank on the row forsigma in the table.
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