Assume an Investor with the Following Utility Function: U =

question 33

Multiple Choice

Assume an investor with the following utility function: U = E(r) - 3/2(s²) . To maximize her expected utility, she would choose the asset with an expected rate of return of _______ and a standard deviation of ________, respectively.

• A)12%; 20%
• B)10%; 15%
• C)10%; 10%
• D)8%; 10%

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Definitions:

Quick-release Valve

A quick-release valve is a valve mechanism designed to allow rapid release of pressure or contents from a system, used in applications like air braking systems in vehicles.

Intake Adapter

A component that allows the connection of various parts of the intake system in an engine, often modifying the flow for performance enhancements.

Air Cleaner Filter Element

A component in the air intake system of engines that removes dust and other particulates from the air before it enters the engine.

C-level PMI

C-level PMI typically refers to high-level preventive maintenance inspections conducted by chief or senior personnel to ensure operational integrity.