Question
A portfolio has an expected rate of return of 0.15 and a standard deviation of 0.15. The risk-free rate is 6%. An investor has the
A portfolio has an expected rate of return of 0.15 and a standard deviation of 0.15. The risk-free rate is 6%. An investor has the following utility function: U = E(r) - (A/2)s 2 . Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset?
How would I complete this on a scientific calculator? For example, you cannot put algebra into a scientific calculator. So I'll need to do it manually, is it possible to adjust the formula so I can be completed in one equation on a scientific calculator?
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Fundamentals Of Healthcare Finance
Authors: Louis C. Gapenski
2nd Edition
1567934757, 978-1567934755
