$4$ point

You have a standard mean$-$variance utility function. You are currently invested in an asset with mean return $30\%$ and standard deviation $5\mathrm{.}4.$ Another asset has a mean return

of $4\%$ and standard deviation $2\mathrm{.}6.$ What risk aversion parameter makes you indifferent between the two assets?

Enter your answer as a decimal rounded to three places.

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