Use the Below Information to Answer the Following Question U = E(r) ? (A/2)s², Where a = 4

question 21

Multiple Choice

Use the below information to answer the following question. $\begin{array}{llcc}\text { Investment } &\text { Expected Return } E(r) &\text { Standard Deviation }\\1&0.12&0.13\\2&0.15&0.15\\3&0.21&0.16\\4&0.24&0.21\\\end{array}$

U = E(r) ? (A/2) s², where A = 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:

Selling Price

The final amount of money charged for a product or service, or the amount the consumer is willing to pay.

Markup Percent

The percentage increase over the cost price of a product to calculate the selling price.

Selling Price

The actual price at which a product or service is sold to the customer.

Camping Equipment

Gear or tools specifically designed for use while camping, including tents, sleeping bags, and portable cooking devices.