Question
A portfolio has an expected rate of return of 15% and a standard deviation of 20%. The risk-free rate is 5%. An investor has the
A portfolio has an expected rate of return of 15% and a standard deviation of 20%. The risk-free rate is 5%. An investor has the following utility function: U = E(r) - .5As2. Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset?
| 5 | ||
| 6 | ||
| 4 | ||
| 3.5 | ||
| none |
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Debt Resisters Operations Manual
Authors: Strike Debt Strike Debt
1st Edition
1604866799, 978-1604866797
