Question: Suppose that the borrowing rate that your client faces is 9%. Assume that the S&P 500 index has an expected return of 16% and standard
Suppose that the borrowing rate that your client faces is 9%. Assume that the S&P 500 index has an expected return of 16% and standard deviation of 28%, that r= 3%. 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.) y=1for
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