Answer:
3
Step-by-step explanation:
Using the rule of exponents
÷
=
, then
÷
=
= 12³
10(x/2 + 8) = 11, expand
10x/2 + 80 = 11
5x/2 = 11-80= -69
5x = -138
x = - 138/5
<h2>
The required "option D) 3.09" is correct.</h2>
Step-by-step explanation:
Given,
A portfolio has a E[r] = 12 %, and
A standard deviation (
) = 18 %
We know that,
Specify utility by U = E(r) – 0.5A
U = 0.12– 0.5(A) × 
= 0.12 - 0.5 × A × 0.0162
In order for the risky portfolio to be preferred to bills,
The following condition must have:
0.12 – 0.0162A > 0.07
⇒ A <
= 3.09
A must be less than 3.09 for the risky portfolio to be preferred to bills.
Thus, the required "option D) 3.09" is correct.