Indifferent between the risky portfolio

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A portfolio has an expected rate of return of 10% and a standard deviation of 29%. The risk-free rate is 3.50%. An investor has the following utility function: U = E(r) - (1/2)A*Variance. Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset? Enter your answer rounded to two decimal places.

Reference no: EM132467352

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