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2. An opportunity provides 50% chance of earning 12% return, 30% chance of earning 20% return and 20% chance of earning -10% returns by

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2. An opportunity provides 50% chance of earning 12% return, 30% chance of earning 20% return and 20% chance of earning -10% returns by the end of 1 year. Find out the certainty equivalent rate of the investment for an investor with utility function U = E(R)- 0.005AS 2 and with risk aversion coefficient 3.

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