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Question 4 5 pts The following statements relate to the quadratic utility function U = E[R] - (A/2) x sigma?. Which one of the following
Question 4 5 pts The following statements relate to the quadratic utility function U = E[R] - (A/2) x sigma?. Which one of the following statements is true? (1) The parameter A refers to the investor's return requirement. (11) The parameter A refers to the investor's aversion to risk. (III) The parameter A indicates the investor's preference for one unit of return per unit of risk. (IV) If A is negative, the investor's indifference curves are upward sloping. (V) If A is negative, the investor's indifference curves are downward sloping, OIV only I only ll only II and III V only Oll and V III only II and IV
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