Question: Consider the following model: wrisky = E [ RM ] rf 2 A . What is the degree of risk aversion required such that an

Consider the following model:
wrisky=E[RM]rf2A.
What is the degree of risk aversion required such that an investor would put 100% of his portfolio in the risk-free asset? (i.e. wrisky=0)
Group of answer choices
A = infinity
A =0
A =3.5
A = Average of all investors
A = exp(R*T)

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