Question: Question 4 (10 marks) Stock A has an expected return of 20% and a standard deviation of 8%. Ken is indifferent between stock A and

Question 4 (10 marks) Stock A has an expected return of

Question 4 (10 marks) Stock A has an expected return of 20% and a standard deviation of 8%. Ken is indifferent between stock A and a risk-free investment that offers 12% return. On the other hand, Nick is indifferent between stock A and a risk-free investment that offers 9% return. Other things being equal, who is more likely to invest in a lower risk portfolio? Why? (10 marks)

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