The risky investment and the risk free investment

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Assume that a risky investment has E(R)=20%, σ=30%. We also know that the risk free return in the market is 7%. We have 2 individuals, one with A=4, and another with A=2. They both want to choose between the risky investment and the risk free investment. Which investment should each of them pick?

Reference no: EM131918690

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