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6. Consider an investment whose payoff is uniformly distributed over (-10,50). Evaluate the investment using (a) the Expected Value criterion, (b) the Mean Variance criterion
6. Consider an investment whose payoff is uniformly distributed over (-10,50). Evaluate the investment using (a) the Expected Value criterion, (b) the Mean Variance criterion (with k = 0.5), (c) the Safety-First Criterion with threshold t = -1 and k = 0.5. 6. Consider an investment whose payoff is uniformly distributed over (-10,50). Evaluate the investment using (a) the Expected Value criterion, (b) the Mean Variance criterion (with k = 0.5), (c) the Safety-First Criterion with threshold t = -1 and k = 0.5
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