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1 a ) Ann would be equally happy with a riskless asset that paid 5 % per year, and a risky asset with a yearly

1a) Ann would be equally happy with a riskless asset that paid 5% per year, and a risky asset with a yearly expected return of 16% and a return standard deviation of 17%.What is Anns coefficient of risk aversion?
1b) Would Ann prefer an investment with an expected return of 10% and a standard deviation of 9% or an investment with an expected return of 8% and a standard deviation of 7%?
1c) Barrys certainty equivalent for an asset with an expected return of 8% and a standard deviation of 7% is 5.8%. Is he more or less risk averse than Ann?

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