当前位置:天才代写 > 作业代写 > 经济作业代做 relative risk aversion代写

经济作业代做 relative risk aversion代写

2021-11-22 15:21 星期一 所属: 作业代写 浏览:54

经济作业代做

FTCP ECON3251

Formative Assignment

经济作业代做 Answer all of the following questions 1) An investor has the following utility function of  wealth W:Calculate the measures of absolute and ···

Answer all of the following questions  经济作业代做

1) An investor has the following utility function of  wealth W:

Calculate the measures of absolute and relative risk aversion (ARA and RRA). Comment on your findings.       (20 marks)

2) The investor in 1) wants to choose one out of two mutually exclusive assets A and B. The probability distributions of their future payoffs are presented in the following payoff table.

Asset A Asset B
Probability Payoff (£) Probability Payoff (£)
0.5 200 0.5 100
0.5 400 0.5 500

 

Explain the investor’s asset choice based on expected utility and stochastic dominance theory, as well as mean-variance criteria. Show your work.          (30 marks)

 

经济作业代做
经济作业代做

 

3) There are two assets C and D in the market. Their future payoffs are presented below. There are two equally likely states of nature.

Asset C Asset D
State Payoff (£) Payoff (£)
1 12 8
2 6 12
Market price 10 12

 

Discuss the state preference theory framework and calculate the prices of the pure securities.    (20 marks)

4) Suppose all market investors are risk averse and able to construct investment portfolios with N risky assets in a frictionless market where unlimited lending and borrowing at the risk free rate (Rf) is possible. Illustrate and explain investor choice of portfolios in terms of portfolio mean return (E(Rp)) and variance (.  (30 marks)

 

 

Overall word limit: 1,500 words maximum.

 

 

MARKING GUIDELINES  经济作业代做

Performance in the formative assessment for this module is judged against the following criteria:

  • Relevance to question(s)
  • Organisation, structure and presentation
  • Depth of understanding
  • Analysis and discussion
  • Use of sources and referencing
  • Overall conclusions

 

 

 

PLAGIARISM AND COLLUSION  经济作业代做

Students suspected of plagiarism, either of published work or the work of other students, or of collusion will be dealt with according to School and University guidelines.

 

 

 

 

更多代写:SQL/Database代写  澳大利亚数学代考  英国Assignment论文代写  Personal Statement研究论文代写  Report代写推荐  亨廷顿健康科学学院代写

合作平台:随笔代写 论文代写 写手招聘 英国留学生代写

 

 

天才代写-代写联系方式