5. Consider the utility function U(W) = WI. What are the characteristics of this func- tion with...

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5. Consider the utility function U(W) = W¯IÆ. What are the characteristics of this func-

tion with respect to absolute and relative risk aversion?

¯bW, where a and b are constants. V"llat are the signs

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Modern Portfolio Theory And Investment Analysis

ISBN: 9780471007432

5th Edition

Authors: Edwin J. Elton, Martin Jay Gruber

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