Estimated that the expected return and standard deviation

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You are a financial advisor and you have estimated that the expected return of Xyon stock is 10% with a standard deviation of 16%. A stock from the same industry, Yane, has a 90% chance of returning a profit of 10% and a 10% chance of losing 20%. Your client, Ms. Rice says she's indifferent between investing in Xyon and Yane. What should her risk aversion coefficient (A=?) be?

Reference no: EM131921372

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