Question: Use the following table to answer the question below. Expected ret. std. dev. S&P500 13% 25% T-bill 3% Borrow 5% What is the maximum risk
Use the following table to answer the question below.
| Expected ret. | std. dev. | |
| S&P500 | 13% | 25% |
| T-bill | 3% | |
| Borrow | 5% |
What is the maximum risk aversion that makes an investor not borrowing?
Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321.
please give me the specific formula and step, thanks!
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