Multiple Choice
Assume an investor with the following utility function: U = E(r) − 0.60(s2) . To maximize her expected utility, she would choose the asset with an expected rate of return of _______ and a standard deviation of ________, respectively.
A) 12%; 20%
B) 10%; 15%
C) 10%; 10%
D) 8%; 10%
Correct Answer:
Verified
Correct Answer:
Verified
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