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2. What is a fair game? 1 point O Investment with positive risk premium O Investment with negative risk premium Investment with zero risk premium
2. What is a fair game? 1 point O Investment with positive risk premium O Investment with negative risk premium Investment with zero risk premium O all of the above 1. In the utility function: U = E(r) -10.5Asz), what is the significance of "A"? 1 point O willingness to take risk O degree of risk taking O degree of risk aversion O O O O none of the above Other: 3. will engage in fair games and gambles 1 point Risk neutral O O O O Risk averse O risk lover O risk indifferent 1 point 5. The point of tangency between an indifference curve (representing what is desirable) and the capital allocation line (representing what is possible), is the optimum portfolio for that investor. a True False
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