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An investor has a utility function which assigns very high utility to portfolios with extreme positive return realisations, independent of the mean and standard deviation
An investor has a utility function which assigns very high utility to portfolios with extreme positive return realisations, independent of the mean and standard deviation of the portfolio returns. This is consistent with:
Select one:
a.Preferences for low idiosyncratic volatility
b.The CAPM
c.Preferences for low-risk
d.Mean-variance utility
e.Preferences for lottery-like payoffs
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