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An investor has preferences represented by the utility function U=E(r)22. What is her certainty equivalent return for a portfolio with an expected return of 10%
An investor has preferences represented by the utility function U=E(r)22. What is her certainty equivalent return for a portfolio with an expected return of 10% and a standard deviation of 15% ? a. 0.5% b. 2.5% C. 1.0% d. 10.0% e. 5.5% Clear my choice
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