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An investor is considering an exchange traded fund with 12% expected return and 24% standard deviation....

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Finance

An investor is considering an exchange traded fund with 12%expected return and 24% standard deviation. What will be hisexpected return, if his risk aversion coefficient is 4? The riskfree rate is 2%. The investor maximizes his utility.

43.4%

0.434%

6.34%

3.04%

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Transcribed Image Text

An investor is considering an exchange traded fund with 12%expected return and 24% standard deviation. What will be hisexpected return, if his risk aversion coefficient is 4? The riskfree rate is 2%. The investor maximizes his utility.43.4%0.434%6.34%3.04%

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