6. On the basis of the utility formula below, which investment would you select if you were risk averse with A = 4? Standard Expected return E() deviation Investment 0.12 0.30 2 0.15 0.50 3 0.21 0.16 0.24 0.21

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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6. On the basis of the utility formula below, which investment would you select if you were risk
averse with A = 4?
Standard
Expected return
E(t)
deviation
Investment
0.12
0.30
0.15
0.50
0.21
0.16
0.24
0.21
Transcribed Image Text:6. On the basis of the utility formula below, which investment would you select if you were risk averse with A = 4? Standard Expected return E(t) deviation Investment 0.12 0.30 0.15 0.50 0.21 0.16 0.24 0.21
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