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Donald Trumpet Is Indifferent Between Rates of Return Satisfying R σ\sigma

Question 40

Multiple Choice

Donald Trumpet is indifferent between rates of return satisfying R = 0.10 + 0.01 σ\sigma ( σ\sigma is the standard deviation) .Donald is:


A) risk-averse and profit maximizing.
B) risk-averse and not profit maximizing.
C) risk loving and profit maximizing.
D) risk loving and not profit maximizing.
E) risk-neutral.

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