Business
Business, 21.02.2020 03:52, taliyahjhonson1

A portfolio has an expected rate of return of 0.15 and a standard deviation of 0.15. The risk-free rate is 6%. An investor has the following utility function: U = E(r) - (A/2)s2. Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset?

a.5
b.6
c.7
d.8

answer
Answers: 2

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A portfolio has an expected rate of return of 0.15 and a standard deviation of 0.15. The risk-free r...

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