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First name and Surname: Points: out of 20 Grading: A (20 - 18) B (17 -16) C (15 -14) D (13 - 12) E (11

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First name and Surname: Points: out of 20 Grading: A (20 - 18) B (17 -16) C (15 -14) D (13 - 12) E (11 -10) F (9-9) 1) Explain the relationship between the certainty equivalent and the certain income of an investor who is risk-seeking and is willing to accept the certain income. (1 point) 2) Algebraically express the expected return on a portfolio that consists of three stocks. (1 point)

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