Question: 3 Suppose that the borrowing rate that your client faces is 12%. Assume that the equity market index has an expected return of 13% and

3 Suppose that the borrowing rate that your client faces is

3 Suppose that the borrowing rate that your client faces is 12%. Assume that the equity market index has an expected return of 13% and standard deviation of 35%, that rf = 4%. 10 points What is the range of risk aversion for which a client will neither borrow nor lend, that is, for which y=1? (Do not round intermediate calculations. Round your answers to 2 decimal places.) eBook y = 1 for SAS Print References

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