Micromanagement question (picture of question attached)
utility function is U(r) = r^1/2
r(.01) = probability of 0.2
r(.04) = probability of 0.4
r(.09) = probability of 0.3
r(25) = probability of .1
q1. calculate the expected return
q2. calculate the expected utility
q3. calculate the certainty equivalent
q4. calculate the risk premium
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