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Problem 1 The 'Super Vehicle' company ordinary share is expected not to bring any profit during the next period with the probability of 6 6
Problem
The 'Super Vehicle' company ordinary share is expected not to bring any profit during the next
period with the probability of But if the market does well the probability of which is
the return will be In other cases, the stockholders' return will be What is the
expected return of 'Super Vehicle' ordinary shares?
Problem
Assume the given data:
What is the approximate expected utility of all portfolios for all investors? Which portfolio is the
best the worst for investors with the following risk aversion levels?
a
b
c
Problem
What investing strategy of every investor from the previous problem will be if the market risk
free rate is
Problem
The 'Real Investments' mutual fund portfolio of ordinary shares includes the following stocks:
'Paper Inc. 'Driving Motors', 'Wooden Co and 'Fuel Oil', that have the given characteristics:
What is the 'Real Investments' fund return?
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