Business
Business, 15.04.2020 17:35, jamilamiller200

A portfolio has an expected rate of return of 0.10 and a standard deviation s of 0.20. The risk-free rate is 0.05. Ron 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. 6
b. 2.5
c. 4
d. 3.5

answer
Answers: 1

Other questions on the subject: Business

image
Business, 21.06.2019 18:20, genyjoannerubiera
Elon musk is the ceo of tesla motors. musk also serves as chairman of tesla's board. according to corporate governance theory, which of the following is a logical reason why musk should serve on the board? 1. he serves on many other boards, including that of a major client of tesla.2. his is an independent director who is well positioned to monitor the company's management.3. he can easily fire board members that are shirking their duties.4. he can provide the board with valuable inside information about the firm and the industry.
Answers: 1
image
Business, 22.06.2019 04:00, only1123
Match the type of agreements to their descriptions. will trust living will prenuptial agreement
Answers: 2
image
Business, 22.06.2019 05:30, junior2461
Identify the three components of a family's culture and provide one example from your own experience
Answers: 2
image
Business, 22.06.2019 11:40, antbanks3050
Jamie is saving for a trip to europe. she has an existing savings account that earns 3 percent annual interest and has a current balance of $4,200. jamie doesn’t want to use her current savings for vacation, so she decides to borrow the $1,600 she needs for travel expenses. she will repay the loan in exactly one year. the annual interest rate is 6 percent. a. if jamie were to withdraw the $1,600 from her savings account to finance the trip, how much interest would she forgo? .b. if jamie borrows the $1,600 how much will she pay in interest? c. how much does the trip cost her if she borrows rather than dip into her savings?
Answers: 1
Do you know the correct answer?
A portfolio has an expected rate of return of 0.10 and a standard deviation s of 0.20. The risk-free...

Questions in other subjects:

Konu
Biology, 01.07.2020 23:01