MGT411 Money & Banking GDB Spring 2021 Solution / Discussion
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#MGT411 GDB 1 IDEA SOL SPRING 2021
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Ahmad is a risk averse investor and these investors do not like taking risk when u ask this kind of investor to invest in any of the two investments having same return he always go for the investment which is less risky so I will suggest him portfolio y because of less risk in it
Hamid is risk-neutral and risk-neutral investor invests totally based on expected rate of return not affected by the element of risk in it. Hamid have the option of both portfolios because they both have expected value that is 1000 not X because it has less value which is 750