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Calculate the utility levels of each portfolio for an investor with A=2. Assume the utility function is U=E(r)-.05Ao2. Annual return is 8% more thanT-bill and
Calculate the utility levels of each portfolio for an investor with A=2. Assume the utility function is U=E(r)-.05Ao2. Annual return is 8% more thanT-bill and standard deviation is 35%. T-bill is 6%. WBills0.0 Windex 1.0 Wbills 0.2windex 0.8 Wbills 0.4 windex 0.6 Wbills 0.6 windex 0.4 Wbills 0.8 windex 0.2 Wbills 1.0 windex 0.0
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