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Business, 24.03.2020 02:35 TheGaines4life

Asset A has an expected return of 15% and a reward-to-variability ratio of .4. Asset B has an expected return of 20% and a reward-to-variability ratio of .3. A risk-averse investor would prefer a portfolio using the risk-free asset and .

A. asset A

B. asset B

C. no risky asset

D. The answer cannot be determined from the data given.

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