Use the Below Information to Answer the Following Question

question 26

Multiple Choice

Use the below information to answer the following question. U=E(r) - (A/2) s²,whereA= 4.0.
The variable (A) in the utility function represents the

• A)investor's return requirement.
• B)investor's aversion to risk.
• C)certainty-equivalent rate of the portfolio.
• D)minimum required utility of the portfolio.

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Definitions:

Milton Rokeach

An American psychologist known for his work on human values and beliefs, including the development of the Rokeach Value Survey.

SMART

An acronym for Specific, Measurable, Achievable, Relevant, and Time-bound, often used in goal setting.

Goal Statements

Clear expressions of desired outcomes or objectives, often defined in specific, measurable terms.

Formalizing Goals

The process of defining and establishing clear, measurable, and time-bound objectives to guide actions and measure accomplishments.