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Explain everything and every step Assume that your risk aversion (A) is 2 and that your utility can be described by the following function U

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Explain everything and every step

Assume that your risk aversion (A) is 2 and that your utility can be described by the following function U = E(r)-1/2Ao What is your utility for the following security x: A, = 1.3 rm = 0.09 2 = 0.03 = 0.14

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