Question: D Paste C X fr Question B A1 1 Question 7 2 3 Consider the following information relating to two investment A & B Investment

D Paste C X fr Question B A1 1 Question 7 2 3 Consider the following information relating to two investment A & B Investment A Investment 8 4 005 5 10 6 7 Return Probability Return Probability 0.05 18 0.05 02 12 0.2 20 0.5 28 0.5 20 02 28 0.2 25 38 25 0.05 8 9 10 11 12 Compute the Utility for A and B and suggest whether you would seker Acre 13 Assume Risk aversion index A = 3 14 15 16 Solution: (to be solved in the space below) 17 18 19 20

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