Question: Briefly explain why we employ utility function in portfolio selection problems and why we assume investors are risk-averse in the portfolio selection theory, both intuitively

Briefly explain why we employ utility function in portfolio selection problems and why we assume investors are risk-averse in the portfolio selection theory, both intuitively and mathematically

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Briefly explain why we employ utility function in portfolio selection problems and why we assume investors are risk-averse in the portfolio selection theory, both intuitively and mathematically

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