Question: Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: Asset A E(A) = 10% OA = 20% Asset

Two assets have the following expected returns and standard deviations when

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: Asset A E(A) = 10% OA = 20% Asset B E(B) = 15% OB = 27% An investor with a risk aversion of A = 6 would find that on a risk-return basis. A. only asset A is acceptable B. only asset B is acceptable C. neither asset A nor asset B is acceptable OD. both asset A and asset B are acceptable

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