Here, the investor is risk-neutral.
A=0
Thus, U = E(r).
We have the requisite information to answer the question, hence option E is eliminated.
Investment Mean Return Std Dev U
1 0.12 0.3 0.12
2 0.15 0.5 0.15
3 0.21 0.16 0.21
4 0.24 0.21 0.24
Thus, it can be seen that investment 4 given the maximum utility, and is thus the selected investment for a risk neutral investor. Thus, option D.
What options does a risk-averse individual select?
- When someone is considering different investment options, they are said to have a risk-neutral mentality.
- One is considered to be risk neutral if they just consider possible profits, regardless of the danger.
- To assess profit without considering risk may look like a dangerous behavior by nature.
Learn more about risk-neutral person
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<u>The complete question is - </u>
Use the below information to answer the following question Investment WN - Expected Return E() 0.12 0.15 0.21 0.24 Standard Deviation 0.3 0.5 0.16 0.21 U= E(r)-(A/2)s2 Which investment would you select if you were risk neutral? A. 1 B.2 C. 3 D. 4 E. Cannot be determined from the information given. If you are risk neutral, your only concern is with return, not risk.
Answer: D.) Direct marketing (happy to help)
Explanation:
Answer: a project
Explanation:
A classic statement regarding project termination and closeout is that the termination of a project is a project. This is because during the project termination stage, many other things are still being done. Project termination stage in a project occurs after the completion of the implementation phase whereby the project deliverables have been given to the client.
The main purpose this stage is to know how well the project team has performed, and also to learn lessons for future purpose. During the project termination and closeout, a final project status report will be prepared and every significant variances has to be explained here after which a project review will be done with the stakeholders and the client. So, the project termination and closeout phase is actually another work on its own.
Answer:
what's your question on it?
