Business
Business, 19.04.2021 15:50, ssteitzsophiee111

You work at a large pension fund and are in charge of risk preference research for a group of 50-year-olds. You've asked them to compare two investment options. Option A: they can invest all of their savings into the risk-free asset, which earns 1.5% annual interest. Option B: they invest all of their savings into a stock portfolio that has a risk premium of 7% and a standard deviation of 24%. If the group is indifferent between these two options, what is their level of risk aversion

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