Question: please make steps clear, thank you! 1. Utility Functions a. Ann would be equally happy with a riskless asset that paid 5% per year, and

please make steps clear, thank you!
please make steps clear, thank you! 1. Utility Functions a. Ann would

1. Utility Functions a. Ann would be equally happy with a riskless asset that paid 5% per year, and a risky asset with a yearly expected return of 16% and a return standard deviation of 17%. What is Ann's coefficient of risk aversion? b. Would Ann prefer an investment with an expected return of 10% and a standard deviation of 9% or an investment with an expected return of 8% and a standard deviation of 7% c. Barry's certainty equivalent for an asset with an expected return of 8% and a standard deviation of 7% is 5.8%. Is he more or less risk averse than Ann

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