Question: There are two assets, L with expected return 7% and volatility 5%, and H with expected return 13% and volatility 20%. Suppose Alice has an
There are two assets, L with expected return 7% and volatility 5%, and H with expected return 13% and volatility 20%.
Suppose Alice has an indifference curve going through both H and L. What is her risk aversion? A = __ (answer with one decimal, e.g., 1.2)
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