Question: Only accept hand-written answer in pdf file format. Keep at least 4 decimals in all calculations U=E (r)- 0.5Ao2 Investors have the above utility function
Only accept hand-written answer in pdf file format. Keep at least 4 decimals in all calculations U=E (r)- 0.5Ao2 Investors have the above utility function and only invest in the market portfolio and the risk-freeasset. The market portfolio has an expected return of 17.4% and a standard deviation of 12.6%.The risk-free lending rate and borrowing rate are 6.2% and 10.3% respectively. A. Determine the range of risk aversion coefhcient that investors will only invest in the marketportfolio. B.Assume there are
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