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Suppose an investor has the utility U = w-a/2*02, where is the expected return and o is the volatility of returns. The variable a in
Suppose an investor has the utility U = w-a/2*02, where is the expected return and o is the volatility of returns. The variable a in the utility formula represents the: investor's aversion to risk O a. O b. preference for one unit of return per four units of risk . market price of risk d. investor's return requirement e certainty equivalent rate of the portfolio
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