Question: Use the following data in answering CFA Problems 1-3: 1. On the basis of the utility formula above, which investment would you select if you

Use the following data in answering CFA Problems 1-3: 1. On

Use the following data in answering CFA Problems 1-3: 1. On the basis of the utility formula above, which investment would you select if you were ris averse with A=4 ? 2. On the basis of the utility formula above, which investment would you select if you were risk neutral? 3. The variable (A) in the utility formula represents the: a. investor's return requirement. b. investor's aversion to risk. c. certainty equivalent rate of the portfolio. d. preference for one unit of return per four units of risk

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