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Professor Saglam has mean-variance preferences with a coefficient of risk aversion of 2 . Based on his preferences, what is the certainty equivalent rate of

image text in transcribed Professor Saglam has mean-variance preferences with a coefficient of risk aversion of 2 . Based on his preferences, what is the certainty equivalent rate of return of a risky portfolio that has an expected return of 0.18 and standard deviation of 0.24 ? Write your answer in two decimals. Example: 0.09. Professor Saglam has mean-variance preferences with a coefficient of risk aversion of 2 . Based on his preferences, what is the certainty equivalent rate of return of a risky portfolio that has an expected return of 0.18 and standard deviation of 0.24 ? Write your answer in two decimals. Example: 0.09

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