Question

Fill in the table below for the indifference curve that corresponds to a Utility = 0.05...

Fill in the table below for the indifference curve that corresponds to a Utility = 0.05 and an investor risk aversions of A=3 and A=4.

Please give steps on how to solve

Standard deviation

Variance E (R) A=3 E (R) A=4

0.0

0.05

0.10

0.15

0.20

0.25

0 0
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Answer #1

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Home nert Page Layout Formulas Data Review View dd-Ins Cut Σ AutoSum General aCopy в 1 프 . Ej-., Δ. 遑锂函Merge & Center. $, % , Paste 弼,8 Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Font Alignment Number Styles Cells Edting W160 JM UN Jo JP Ja JR JS JT JU JX JY 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 4 KE CAPM UTILITY, SHARPE, beta bond U- E(r) 0.5*A (SD)A2 E(r)-U 0.5 A (SD)A2 U 0.09 SD VARIANCE A 3 SDA2 A 4 E(R)E(R) EXPLANATION 0 5.00% 0.05 0.0025 5.38% 0.01 6.50% 0.0225 8.38% 004 11.00% 0.25 0.0625 14.38% 0 SJV$1484(0.5*4*S152) 5.00% 5.50% 7.00% 9.50% 13.00% 17.50% < 0.1 0.15 0.2 future INDEX INTL CAP BUDLEASING PV, FV, ANNUITYDIR cleanYIELD bond tru WACC RESI ex d 130% 01-02-2019

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