Assume expected returns and deviations for all securities, as well as the risk-free rate for lending and borrowing, are known. Also, assume that the rate for borrowing and lending are the same. Will investors arrive at the same optimal risky portfolio?

Assume expected returns and deviations for all securities, as well as the risk-free rate for lending and borrowing, are known. Also, assume that the rate for borrowing and lending are the same. Will investors arrive at the same optimal risky portfolio?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.5P

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please explain clearly
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Need qualitiey answer Define a rational risk aversive investor.
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