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Problem 12. Calculate the utility levels of each portfolio of Problem 11 using the following utility function with a risk-aversion coefficient of 2. What do

Problem 12. Calculate the utility levels of each portfolio of Problem 11 using the following utility function with a risk-aversion coefficient of 2. What do you conclude?

U=Er-12A2

Use these inputs for problems 13 through 15: You manage a risky portfolio with expected rate of return of 18% and standard deviation of 28%. The T-bill rate is 8%.

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