Question: Problem 4:25 marks) You have estimated the following probabilities for eamings per share of companies A, B and C: Probability A B 0.1 -10 -5

Problem 4:25 marks) You have estimated the following probabilities for eamings

Problem 4:25 marks) You have estimated the following probabilities for eamings per share of companies A, B and C: Probability A B 0.1 -10 -5 -10 0.2 -5 0 -5 0.4 5 0 10 0.2 5 5 10 0.1 10 5 15 a. Assume that your marginal utility is positive, which company(ies) will you include eventually in your portfolio. b. If you are risk averse, which company(ies) will you include eventually in your portfolio

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