The utility score an investor assigns to a particular portfolio, other things equal,

A. 0.087; 0.06

B. 0.087; 0.12

C. 0.114; 0.12

D. 0.795; 0.14

E. 0.295; 0.12

A. the security's variance.

B. minimum required utility of the portfolio.

C. investor's return requirement.

D. investor's aversion to risk.

E. certainty-equivalent rate of the portfolio

A. an investor's risk tolerance is decreasing.

B. borrowing rate exceeding lending rate.

C. increase in the portfolio proportion of the risk-free asset.

D. reward-to-volatility ratio increasing.

E. a flawed theory

A. maximizes her expected utility.

B. maximizes her expected profit.

C. minimizes both her risk and return.

D. minimizes her risk.

E. maximizes her risk

A. I and II only

B. II, III, and IV only

C. II and III only

D. I only

E. II only

A. final wealth will be greater than initial wealth.

B. investors will lose money.

C. terminal wealth will be less than initial wealth.

D. more than one outcome is possible.

E. the standard deviation of the payoff is larger than its expected value