Question
An investor is considering an exchange traded fund with 10% expected return and 20% standard deviation. What will be his expected return, if his risk
An investor is considering an exchange traded fund with 10% expected return and 20% standard deviation. What will be his expected return, if his risk aversion coefficient is 4? The risk free rate is 2%. The investor maximizes his utility.
| 50% | ||
| 2.8% | ||
| 0.5% | ||
| 6% |
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
