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What is condition of a to make the investors prefer risky

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The utility function of an investor is U Er.Aσ*= () -052. The risk free rate is 2%. The Expected return is 10% and SD is 20%.

Problem (a) What is condition of A to make the investors prefer the risky portfolio than the risk free asset?

Problem (b) What is condition of A to make the investors prefer the risk free asset than the risky portfolio?

Reference no: EM132949183

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