Question
Continue with Q.5. Assume that your utility function, U=E(R p )-0.5A 2 p If A=3, then what are the weights in the risky portfolio and
Continue with Q.5. Assume that your utility function, U=E(Rp)-0.5A2p
If A=3, then what are the weights in the risky portfolio and risk-free asset that maximize your utility? (Hint: Using CAL write E(Rp) in terms of p, then use first derivatives)
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The Global Financial Crisis What Have We Learnt
Authors: Steven Kates
1st Edition
0857934228, 978-0857934222
