If the risk penalty is 4.50% and portfolio's expected return is 13%, what will be the utility of the portfolio ?

CS Executive · Financial and Strategic Management · PYQS · December 2021
If the risk penalty is 4.50% and portfolio's expected return is 13%, what will be the utility of the portfolio ?
(A) 8.5%
(B) 2.89%
(C) 0.35%
(D) -8.5%

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Financial Management

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