Consider an investor with risk aversion of A = 4. The investor owns a portfolio with expected return of 12.00% and standard deviation of 0.18%. If an alternative portfolio had an expected return of 14.00%, what standard deviation would it need for the investor to be indifferent? The standard deviation would need to be %. Round your answer to the nearest two decimal places. Should the investor switch to a portfolio with expected return of 10% and standard deviation of 12%? ---Select---

Consider an investor with risk aversion of A = 4. The investor owns a portfolio with expected return of 12.00% and standard deviation of 0.18%. If an alternative portfolio had an expected return of 14.00%, what standard deviation would it need for the investor to be indifferent? The standard deviation would need to be %. Round your answer to the nearest two decimal places. Should the investor switch to a portfolio with expected return of 10% and standard deviation of 12%? ---Select---

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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