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    Utility

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    Please see attached.

    Base on the following info, and assume a concave utility function.

    (ERA, ) = (10, 3), (ERB, ) = (10, 4), (ERC, ) = (11, 3) and (ERD, ) = (11, 4).

    How can I establish a dominance relationship between the following securities based on
    the expected return, standard deviation pairs (ER, )?

    Are there any alternative method?

    © BrainMass Inc. brainmass.com March 4, 2021, 5:56 pm ad1c9bdddf
    https://brainmass.com/math/linear-programming/utility-concave-functions-19396

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    Solution Summary

    The expert analyzes the utility of concave functions. The dominance relationship between securities based on the expected return standard deviation pairs are determined.

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