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%

Expert Solution

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jeff jeffy answered 11 months ago

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