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An investor has a coefficient of absolute risk aversion equal to 1. Assuming a quadratic utility function with a scaling coefficient of 0.5, the utility
An investor has a coefficient of absolute risk aversion equal to 1. Assuming a quadratic utility function with a scaling coefficient of 0.5, the utility she would get from investing in an asset with a return of 3.5% and a standard deviation of 4% is: A. 0.75% OB. 1.5% C. 1.71% OD.3.42%
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