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Fred Kruger Is Indifferent Between Return Rates Satisfying R = σ\sigma

Question 35

Multiple Choice

Fred Kruger is indifferent between return rates satisfying R = 0.10 + (-0.01) σ\sigma ,where σ\sigma measures risk.Fred is:


A) risk-averse and profit maximizing.
B) risk-averse and not profit maximizing.
C) risk loving and profit maximizing.
D) risk loving and not profit maximizing.
E) risk-neutral.

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