Question: 16. Suppose that, over a given time interval, we estimate the rate of return parameters for Walmart and Commonwealth Edison stock as: Walmart: mean

16. Suppose that, over a given time interval, we estimate the rate

16. Suppose that, over a given time interval, we estimate the rate of return parameters for Walmart and Commonwealth Edison stock as: Walmart: mean = .00225, variance = .0002258 ComEd: mean = .001125, variance = .000148517 Does an investor with risk aversion 2 prefer Walmart or ComEd? How about an investor with risk aversion 8? Find a value for the risk aversion such that investors above that value prefer ComEd and investors below that value prefer Walmart. Exa free an S V

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