Multiple Choice
Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a risky portfolio with a standard deviation of 24% only if the risky portfolio's expected return is at least ________.
A) 8.67%
B) 9.84%
C) 21.28%
D) 14.68%
Correct Answer:
Verified
Correct Answer:
Verified
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