Annas preferences are described by a time-separable log-utility function with a constant discount factor and the risk

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Anna’s preferences are described by a time-separable log-utility function with a constant discount factor and the risk free interest rate is 10%. Her consumption remains constant over time. What does this observation imply for her time preference?

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Essentials of Investments

ISBN: 978-0077835422

10th edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Posted Date: Feb 11, 2024 07:52 AM

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Annas preferences are described by a time-separable log-utility function with a constant discount factor and the risk

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1 Constant Discount Factor A constant discount factor in the logutility function indicates exponenti... View the full answer

Essentials of Investments

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