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Does power-utility investor with the utility function as in question 1 always invest more than what log-utility investor with mu (x) = ln (x) does
Does power-utility investor with the utility function as in question 1 always invest more than what log-utility investor with mu (x) = ln (x) does for any given initial wealth W_0? Does your answer still hold when what considered is not the amount of money but the proportion of wealth invested in the risky asset? Does power-utility investor with the utility function as in question 1 always invest more than what log-utility investor with mu (x) = ln (x) does for any given initial wealth W_0? Does your answer still hold when what considered is not the amount of money but the proportion of wealth invested in the risky asset
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