Marvin Is an Expected Utility Maximizer

question 7

Multiple Choice

Marvin is an expected utility maximizer.He chooses his portfolio so as to maximize the expected value of 2,000,000x - x².If m is the mean of Marvin's income and s is the standard deviation, Marvin's income as a function of the mean and standard deviation is

• A)U = 2,000,000m -s².
• B)U = 2,000,000m - s.
• C)U= m - s/2,000,000.
• D)U = 2,000,000 + s.
• E)None of the above.

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