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Treasury Notes Are Paying a 4% Rate of Return

Question 21

Multiple Choice

Treasury notes are paying a 4% rate of return. A risk averse investor with a risk aversion of A = 3 should invest 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) 12.64%
D) 14.68%

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