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    Exam 6: Risk Aversion and Capital Allocation to Risky Assets
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    In the Utility Function: U = E(r)- [-0
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In the Utility Function: U = E(r)- [-0

Question 39

Question 39

Essay

In the utility function: U = E(r)- [-0.005As2],what is the significance of "A"?

Correct Answer:

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A is simply a scale factor indicating th...

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