What is the certainty equivalent of these portfolios


Problem: You are considering two portfolios. Portfolio A has an expected return of 15% and a standard deviation of 30%. Portfolio B has an expected return of 6% and a standard deviation of 19%. What is the certainty equivalent of these portfolios, specifically when your risk aversion is such that you are indifferent between portfolio A and portfolio B?

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Econometrics: What is the certainty equivalent of these portfolios
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