Question: 1 a ) Ann would be equally happy with a riskless asset that paid 5 % per year, and a risky asset with a yearly
a Ann would be equally happy with a riskless asset that paid per year, and a risky asset with a yearly expected return of and a return standard deviation of What is Anns coefficient of risk aversion?
b Would Ann prefer an investment with an expected return of and a standard deviation of or an investment with an expected return of and a standard deviation of
c Barrys certainty equivalent for an asset with an expected return of and a standard deviation of is Is he more or less risk averse than Ann?
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