Question: Adeline has been tasked with calculating the utility level for a client of Xron Growth Funds, and will use the same utility objective function we

Adeline has been tasked with calculating the utility level for a client of Xron Growth Funds, and will use the same utility objective function we have used in the textbook. Using a detailed questionairre, Adeline has determined that the client's aversion level (A) is 6 , and has also estimated : the Market return =15.4% with variance 42.2 the Risk-free rate is 3.4%, the Portfolio return =13.9% with portfolio variance 30 , and beta (relative to the market) is 1.32. Given this information, what is the utility level? Select one: a. 111 b. 80 c. 95 d. 3 e. 78 f. 76 g. insufficient information to determine Adeline has been tasked with calculating the utility level for a client of Xron Growth Funds, and will use the same utility objective function we have used in the textbook. Using a detailed questionairre, Adeline has determined that the client's aversion level (A) is 6 , and has also estimated : the Market return =15.4% with variance 42.2 the Risk-free rate is 3.4%, the Portfolio return =13.9% with portfolio variance 30 , and beta (relative to the market) is 1.32. Given this information, what is the utility level? Select one: a. 111 b. 80 c. 95 d. 3 e. 78 f. 76 g. insufficient information to determine
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
