Question: Use the following table to answer the question below. E[r] std. dev. S&P500 13% 25% T-bill 6% 0% Borrow 10% What is the minimum level
Use the following table to answer the question below.
| E[r] | std. dev. | |
| S&P500 | 13% | 25% |
| T-bill | 6% | 0% |
| Borrow | 10% |
What is the minimum level of risk aversion level that will make an investor neither borrow nor lend?
What is the maximum amount of risk aversion level that will make an investor neither borrow nor lend?
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To determine the minimum and maximum levels of risk aversion that will make an investor neither borrow nor lend we need to compare the expected return ... View full answer
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