Question: Tomas has been tasked with calculating the utility level for a client of Garback Value Funds, and will use the same utility objective function we
Tomas has been tasked with calculating the utility level for a client of Garback Value Funds, and will use the same utility objective function we have used in the textbook. Using a detailed questionairre, Tomas has determined that the client's aversion level (A) is 3.6, and has also estimated : the Market return =12.2% with variance 50.2 the Risk-free rate is 1.6%, the Portfolio return =10.7% with portfolio variance 38 , and beta (relative to the market) is 1.32. Given this information, what is the utility level? Select one: a. 78 b. 58 c. 59 d. 59 e. 69
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
