Question

U PPoblem manager is trying to establish a strategic erent clients, Bob Bowman and Bowman has a risk tolerance factor of 22 and k has a risk tolerance factor of 6. The characteristics e model portfolios under consideration are 3. A portfolio asset allocation for two diff Tom Luck. Bob Luc Tom of the thre provided in the table below. Asset Mix Portfolio St ock Bond Expected Return Variance 0.75 0.25 0.12 0.45 0.6 0 0.08 0.16 0.3 0. 0.05 0.06 All rights reserved 다! What is the expected utilities of Portfolios A, B and Cfor (1) Bob Bowman? (2) What is the expected utilities of Portfolios A, B and C for Tom Luck? (3) What are the recommended portfolios for Bob and Tom?

Answer 1

DATE Asr Anding, he utludy heutil xams like CFA used ECRe) 之 9.qcy. 0800727 2 07272 Cs Scanhed ckishste CamScanner PAGE

DATE For 0.04727 = 4.127 . C, Y 2 5.33 06 Cup) 0 Cs Scanned w

DATE SF CS CamScanner
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