Question: Excel Sheet Calculation for Calculating Expected Utility for three Stocks from FTSE 100 taking last 30 days price. If A has Risk Tolerance 25 and
Excel Sheet Calculation for Calculating Expected Utility for three Stocks from FTSE 100 taking last 30 days price. If A has Risk Tolerance 25 and B has Risk Tolerance of 8. Then which Stock they individually should go for? Explain why there is a difference (if any) in the expected utility for the two clients from their respective best stock.
For each of your three stocks, compute and comment on its Treynor and Sharpe ratio (Beta can be taken from Yahoo Finance . Assume an annual risk-free rate of 5%).
Choose two of three stocks. Which value of risk tolerance makes clients indifferent between them?
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