Task \#3. You have the following data on long-run average returns of different types of...
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Task \#3. You have the following data on long-run average returns of different types of investments. Assume that investors have an expected utility function of the form EU=E(R)2aVar(R) where R is return and a is the coefficient of absolute risk aversion. Based on the information above, how risk-averse are the investors who are indifferent between investing in small-company and large-company stocks? And between large-cap stocks and long-term treasury bonds
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