Question
Q1 Consider the following utility functions, where W is wealth: a.U(W) = W 2 b.U(W) =1/W c.U(W) = -W d.U(W) = W e.U(W) = ln(W)
Q1 Consider the following utility functions, where W is wealth:
a.U(W) = W2
b.U(W) =1/W
c.U(W) = -W
d.U(W) = W
e.U(W) = ln(W)
f.U(W) =w1-y/1-ywith = 2
How likely are each of these functions to represent actual investor preferences? Why?
Q1.2
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Fundamentals Of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
13th Edition
978-0134083308, 013408330X
