Based on the formula for investor satisfaction or utility, which investment would you select if you were

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Based on the formula for investor satisfaction or "utility," which investment would you select if you were risk averse with A = 4?

Based on the formula for investor satisfaction or

Investor "satisfaction" with portfolio increases with expected return and decreases with variance according to the "utility" formula: U = E(r) - ½ Aσ2 where A = 4.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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Essentials of Investments

ISBN: 978-0078034695

9th edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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