Assume that the investors initial wealth is $40,000 and that her utility function is U = W
Question:
Assume that the investor’s initial wealth is $40,000 and that her utility function is U = W1/2. What is the expected utility of the portfolio described in question 61?
Question 61
Assume that the investor puts her $40,000 in a portfolio consisting x percent of
bonds and (1 - x) percent of stock. What is the expected value of this portfolio?
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Related Book For
Statistics For Business And Financial Economics
ISBN: 9781461458975
3rd Edition
Authors: Cheng Few Lee , John C Lee , Alice C Lee
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