Assume an Investor with the Following Utility Function: U =

question 56

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%
• E)none of the above

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