# Question

Assume the utility function is U(W) = -W-1/2. What is the preferred investment in Problem 1?

In Problem 1

In Problem 1

## Answer to relevant Questions

Consider the following two investments. Which is preferred if the utility function is U(W) = -W - 0.04W2? If RL equals 10%, what is the preferred investment shown in Problem 1 using Kataoka’s safety-first criterion? In Problem 1 Given the data in the prior question, what is the standard deviation of return from the point of view of a U.S. investor and of a U.K. investor? Write the CAPM shown in Problem 4 in price form. In Problem 4 You have just lectured two tax-free institutions on the necessity of including taxes in the general equilibrium relationship. One believed you and one did not. Demonstrate that if the model holds, the one that did could ...Post your question

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