Problem $5$

The 'Super Vehicle' company ordinary share is expected not to bring any profit during

the next period with the probability of $66\%.$ But if the market does well $($the $11\%$ probability$)$

the return will be $8\mathrm{.}44\%.$ In other cases, the stockholders' return will be $1\mathrm{.}50\%.$ What is the

expected return of 'Super Vehicle' ordinary shares?

Problem $6$

Assume the given data:

What is the approximated expected utility of all portfolios for all investors? Which

portfolio is the best $($the worst$)$ for investors with the following risk aversion levels?

a$)4.$

b$)5.$

c$)6.$

Problem $7$

What investing strategy of every investor from the previous problem will be if the

market risk$-$free rate is $4\mathrm{.}12\%?$