If a portfolio's expected return is 9 percent, variance of return is 100 percent and the investor's risk tolerance is 50, the risk penalty and utility respectively are :

CS Executive · Financial and Strategic Management · PYQS · June 2023
If a portfolio's expected return is 9 percent, variance of return is 100 percent and the investor's risk tolerance is 50, the risk penalty and utility respectively are :
(A) 2 & 7
(B) 2 & 8
(C) 3 & 7
(D) 3 & 8

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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