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The table below shows four investments of varying risk and return. If your risk aversion coefficient A = 4, which investment would you select and
- The table below shows four investments of varying risk and return. If your risk aversion coefficient A = 4, which investment would you select and why?
| Investment | E(r) | Std Deviation | Utility for (A=4) |
| 1 | .12 | .3 |
|
| 2 | .15 | .5 |
|
| 3 | .21 | .16 |
|
| 4 | .24 | .21 |
|
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The Global Financial Crisis What Have We Learnt
Authors: Steven Kates
1st Edition
0857934228, 978-0857934222
