How much of his $1000 should a utility maximazing investor with risk aversion of 2.9 invest in

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How much of his $1000 should a utility maximazing investor with risk aversion of 2.9 invest in the mutual fund recommended by his financial advisor, if the fund has 11% expected return and 32% standard deviation while the risk free rate is 2%?

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Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Jul 06, 2023 08:51 AM

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How much of his $1000 should a utility maximazing investor with risk aversion of 2.9 invest in

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Given Investors initial wealth 1000 Risk aversion coefficient A 29 Expected return of the ... View the full answer

Microeconomics An Intuitive Approach with Calculus

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