Question: Returns E B a. A Risk a. (5pts) Explain why the investment at point B dominates the investment at point D b. (5pts) Explain why

Returns E B a. A Risk a. (5pts) Explain why the

Returns E B a. A Risk a. (5pts) Explain why the investment at point B dominates the investment at point D b. (5pts) Explain why the investment at point C dominates the investment at point D c. (10pts) Describe the relationship between the investments at points B and E. Does one dominate the other? Why or why not? d (5pts) Which investment(s) would a rational investor choose? e. (Spts) Where on the dominating set would a very risk averse person be satisfied? Identify an investment option for the very risk averse person. Returns E B a. A Risk a. (5pts) Explain why the investment at point B dominates the investment at point D b. (5pts) Explain why the investment at point C dominates the investment at point D c. (10pts) Describe the relationship between the investments at points B and E. Does one dominate the other? Why or why not? d (5pts) Which investment(s) would a rational investor choose? e. (Spts) Where on the dominating set would a very risk averse person be satisfied? Identify an investment option for the very risk averse person

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