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An investor is considering an exchange traded fund with 12% expected return and 24% standard deviation....

An investor is considering an exchange traded fund with 12% expected return and 24% standard deviation. What will be his expected return, if his risk aversion coefficient is 4? The risk free rate is 2%. The investor maximizes his utility.

43.4%

0.434%

6.34%

3.04%

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago
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