How is Utility Function Used
How is Utility Function Used?
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This can be used to rank outcomes, to aggregate ‘happiness’ across singles and to value games of opportunity.
Company A is a AAA-rated firm wanting to issue five-year FRNs. It determines that it can issue FRNs at six-month LIBOR + 1/8 percent or at the six-month Treasury-bill rate + ½ percent. Specified its asset structure, LIBOR is the preferred index. Comp
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