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Question 2 (Advice in a pure investment problem) A higher education teacher must decide where to invest her retirement plan savings. Her preferences for uncertain
Question 2 (Advice in a pure investment problem) A higher education teacher must decide where to invest her retirement plan savings. Her preferences for uncertain money prospects can be represented by an expected utility function, with utility u(x), where x is the (random) amount of money at the end of the investment period, and u'>0,u"r. Advise the teacher on whether or not she should invest part of her savings in the Vanguard fund. [Of course, you must explain your answer!) Question 2 (Advice in a pure investment problem) A higher education teacher must decide where to invest her retirement plan savings. Her preferences for uncertain money prospects can be represented by an expected utility function, with utility u(x), where x is the (random) amount of money at the end of the investment period, and u'>0,u"r. Advise the teacher on whether or not she should invest part of her savings in the Vanguard fund. [Of course, you must explain your answer!)
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