An investor with utility function of wealth U(w) = 0.5*ln(w) + 1 What is this investor's attitude
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Question:
An investor with utility function of wealth
U(w) = 0.5*ln(w) + 1
What is this investor's attitude towards risk? How does he behave when he has more wealth as opposed to when he is poor?
(10 marks)
Related Book For
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
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