#7 a. Discuss a standard IOL, and how the choices of 1) a very risk averse...

a. Discuss a standard IOL, and how the choices of 1) a very risk averse investor, 2) an investor with 'normal' risk aversion, and 3) a risk seeking investor will differ.

b. Explain how money fits in a portfolio decision (as a risk asset). In answering, show how money (as a riskless asset) alters the IOL and show an equilibrium holding of money and bonds.

c. Compare and contrast the bracketed term in the IOL to the beta famous in finance.

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Expert Solution

Rahul Sunny answered 1 year ago

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