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Which of the investment option will maximize utility

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Problem 1: Assume an investor with the following utility function: U = E(r) - 0.60(σa) E(r) = 12%; σb) E(r) = 10%; σ ??????2), which of the following investment option will maximize his utility?

a) =20%

b) =15%

c) E(r) = 10%; σ=10%

d) E(r) = 8%; σ=10%

e) Can not be determined

 

Reference no: EM132982323

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