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Your client Tomi has a risk aversion coefficient of 2 . You estimate the standard deviation of asset B is 2 2 % . If

Your client Tomi has a risk aversion coefficient of

2 .

You estimate the standard deviation of asset B is

22 % .

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 Tomi?

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