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Your client Lisa has a risk aversion coefficient of 2.5. You estimate the standard deviation of asset B is 24%. If the risk-free rate of

Your client Lisa has a risk aversion coefficient of 2.5. You estimate the standard deviation of asset B is 24%. If the risk-free rate of return is 5%, what minimum rate of return must asset B earn in order for you to recommend it to Lisa?

34%

19.4%

65%

29%

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