Question
In: Finance
Assume an investor with the following utility function: U = E(r) - 3/2(s2). If the investors...
Assume an investor with the following utility function: U = E(r) - 3/2(s2).
If the investors pportfolio has an expected return of 10.9 and standard deviation of 26.4. What is the investors utility?
Solutions
Expert Solution
Utility Function = E(r) - 3/2(s2)
= 0.109 - 1.5(0.264)2
= 0.109 - 0.1045 = 0.0045, or 0.45%
jeff jeffy answered 2 years agoRelated Solutions
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