Question: Problem Set 3 Q1 (Essential to cover a, b, d, e) Consider the following utility functions, where Wis wealth: a. U(W)=W2 b. U(W) c. U(W)

Problem Set 3 Q1 (Essential to cover a, b, d, e)

Problem Set 3 Q1 (Essential to cover a, b, d, e) Consider the following utility functions, where Wis wealth: a. U(W)=W2 b. U(W) c. U(W) =-W d. U(W) = W e. U(W) = ln(W) wl- f. U(W) with y = 2 1-2 How likely are each of these functions to represent actual investor preferences? Why? Problem Set 3 Q1 (Essential to cover a, b, d, e) Consider the following utility functions, where Wis wealth: a. U(W)=W2 b. U(W) c. U(W) =-W d. U(W) = W e. U(W) = ln(W) wl- f. U(W) with y = 2 1-2 How likely are each of these functions to represent actual investor preferences? Why

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