Question: Suppose that the borrowing rate that your client faces is 10%. Assume that the S&P 500 index has an expected return of 12% and standard

Suppose that the borrowing rate that your client faces is 10%.

Suppose that the borrowing rate that your client faces is 10%. Assume that the S&P 500 index has an expected return of 12% and standard deviation of 25%, that = 5% What is the range of risk aversion for which a client will neither borrow nor lend, that is, for which y 1? (Do not round intermediate calculations. Round your answers to 2 decimal places.) - 1 for

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