Three Economic questions

profilejerryshelly
part_2.xlsx
Home>Business & Finance homework help>Economics homework help>Three Economic questions

ExpUtility

W U
5000
10000
15000
pi 0.50
E(U(W))
W_(CE)
E(W)
Risk Premium
Recall, U = (W)^(0.25)

IndiffCurve

Date EWG Price Return IVV Price Return EWG IVV
1/3/12 20.07 128.02 Return Use annualized average return
1/4/12 19.88 128.13 Variance Use daily variance
1/5/12 19.65 128.55 A
1/6/12 19.29 128.27 Utility
1/9/12 19.37 128.43
1/10/12 19.72 129.59
1/11/12 19.76 129.69 sigma2 E( r ) sigma
1/12/12 20.1 130 0 0
1/13/12 19.61 129.5 0.5 0.7071067812
1/17/12 20.2 129.75 1 1
1/18/12 20.68 131.2 1.5 1.2247448714
1/19/12 20.94 131.94 2 1.4142135624
1/20/12 20.93 131.91 2.5 1.5811388301
1/23/12 21.11 132.03 3 1.7320508076
1/24/12 21.06 131.91 3.5 1.8708286934
1/25/12 21.33 133.01 4 2
1/26/12 21.49 132.33 4.5 2.1213203436
1/27/12 21.67 132.25 5 2.2360679775
1/30/12 21.32 131.79 5.5 2.3452078799
1/31/12 21.33 131.77 6 2.4494897428
2/1/12 21.85 132.88 6.5 2.5495097568
2/2/12 22.03 133.17
2/3/12 22.43 135.04
2/6/12 22.34 134.87
2/7/12 22.51 135.23
2/8/12 22.63 135.63
2/9/12 22.74 135.82
2/10/12 22.14 134.88
2/13/12 22.38 135.82
2/14/12 22.19 135.67
2/15/12 22.08 135.07
2/16/12 22.43 136.52
2/17/12 22.7 136.85
2/21/12 22.88 136.95
2/22/12 22.74 136.49
2/23/12 22.93 137.14
2/24/12 23.19 137.37
2/27/12 23.03 137.67
2/28/12 23.3 138.05
2/29/12 22.95 137.32
3/1/12 23.22 138.21
3/2/12 22.96 137.85
3/5/12 22.85 137.28
3/6/12 21.77 135.16
3/7/12 22.06 136.17
3/8/12 22.87 137.51
3/9/12 22.74 138.05
3/12/12 22.86 138.07
3/13/12 23.14 140.56
3/14/12 23.15 140.38
3/15/12 23.51 141.22
3/16/12 23.66 141.41
3/19/12 23.74 141.99
3/20/12 23.42 141.56
3/21/12 23.37 141.3
3/22/12 23.04 140.33
3/23/12 23.29 140.81
3/26/12 23.8 142.06
3/27/12 23.59 141.67
3/28/12 23.31 141
3/29/12 23.01 140.71
3/30/12 23.28 141.21
4/2/12 23.63 142.32
4/3/12 23.14 141.78
4/4/12 22.42 140.27
4/5/12 22.14 140.3
4/9/12 21.96 138.69
4/10/12 21.52 136.4
4/11/12 21.93 137.34
4/12/12 22.37 139.3
4/13/12 21.62 137.59
4/16/12 21.93 137.48
4/17/12 22.41 139.53
4/18/12 22.21 139.11
4/19/12 22 138.28
4/20/12 22.3 138.4
4/23/12 21.66 137.28
4/24/12 21.77 137.79
4/25/12 22.27 139.73
4/26/12 22.52 140.66
4/27/12 22.67 140.91
4/30/12 22.54 140.28
5/1/12 22.65 141.21
5/2/12 22.34 140.84
5/3/12 22.09 139.79
5/4/12 21.54 137.49
5/7/12 21.64 137.55
5/8/12 21.3 136.99
5/9/12 21.09 136.17
5/10/12 21.18 136.49
5/11/12 21.21 136.03
5/14/12 20.73 134.62
5/15/12 20.38 133.83
5/16/12 20.3 133.33
5/17/12 19.97 131.35
5/18/12 19.96 130.22
5/21/12 20.45 132.43
5/22/12 20.33 132.66
5/23/12 20.16 132.74
5/24/12 19.81 132.84
5/25/12 19.82 132.56
5/29/12 20.14 134.15
5/30/12 19.51 132.19
5/31/12 19.49 131.85
6/1/12 18.82 128.76
6/4/12 18.84 128.6
6/5/12 18.77 129.33
6/6/12 19.4 132.36
6/7/12 19.36 132.53
6/8/12 19.38 133.52
6/11/12 19.15 132.54
6/12/12 19.48 133.47
6/13/12 19.34 132.57
6/14/12 19.45 133.92
6/15/12 19.88 135.2
6/18/12 19.71 135.51
6/19/12 20.24 136.27
6/20/12 20.33 135.99
6/21/12 19.19 133.02
6/22/12 19.24 133.96
6/25/12 18.7 131.78
6/26/12 18.74 132.46
6/27/12 18.9 133.71
6/28/12 18.73 133.39
6/29/12 19.8 136.75
7/2/12 19.97 137.04
7/3/12 20.18 137.97
7/5/12 19.71 137.34
7/6/12 19.26 135.95
7/9/12 19.24 135.84
7/10/12 19.15 134.69
7/11/12 19.28 134.64
7/12/12 19.17 134.02
7/13/12 19.59 136.3
7/16/12 19.61 135.98
7/17/12 19.8 136.9
7/18/12 20.01 138.01
7/19/12 20.25 138.29
7/20/12 19.66 137.01
7/23/12 19.02 135.67
7/24/12 18.75 134.54
7/25/12 19.01 134.49
7/26/12 19.68 136.67
7/27/12 20.34 139.33
7/30/12 20.2 139.24
7/31/12 20.21 138.45
8/1/12 20.09 138.16
8/2/12 19.57 137.2
8/3/12 20.69 139.87
8/6/12 20.86 140.2
8/7/12 20.98 140.91
8/8/12 20.89 141.11
8/9/12 20.79 141.2
8/10/12 20.84 141.38
8/13/12 20.78 141.32
8/14/12 20.85 141.4
8/15/12 20.74 141.56
8/16/12 21.03 142.56
8/17/12 21.15 142.79
8/20/12 21.15 142.83
8/21/12 21.39 142.37
8/22/12 21.44 142.4
8/23/12 21.21 141.26
8/24/12 21.15 142.17
8/27/12 21.31 142.11
8/28/12 21.38 141.96
8/29/12 21.33 142.1
8/30/12 20.94 141.08
8/31/12 21.22 141.88
9/4/12 21.19 141.28
9/5/12 21.33 141.48
9/6/12 21.99 144.35
9/7/12 22.48 145
9/10/12 22.27 144.1
9/11/12 22.74 144.46
9/12/12 22.94 145.04
9/13/12 23.25 147.33
9/14/12 23.53 147.88
9/17/12 23.47 147.42
9/18/12 23.26 147.28
9/19/12 23.37 147.39
9/20/12 23.27 147.33
9/21/12 23.43 147.17
9/24/12 23.28 147.02
9/25/12 23.02 144.76
9/26/12 22.73 143.93
9/27/12 22.97 145.31
9/28/12 22.57 144.4
10/1/12 22.73 144.92
10/2/12 22.91 145.13
10/3/12 22.91 145.66
10/4/12 23.17 146.81
10/5/12 23.32 146.7
10/8/12 23.02 146.22
10/9/12 22.58 144.84
10/10/12 22.55 143.93
10/11/12 22.77 144.02
10/12/12 22.78 143.41
10/15/12 22.96 144.6
10/16/12 23.4 146.2
10/17/12 23.58 146.78
10/18/12 23.55 146.47
10/19/12 23.22 143.86
10/22/12 23.3 144.02
10/23/12 22.7 141.95
10/24/12 22.6 141.59
10/25/12 22.73 142.02
10/26/12 22.8 141.93
10/31/12 22.94 141.48
11/1/12 23.13 143.46
11/2/12 22.88 142.1
11/5/12 22.87 142.41
11/6/12 23.08 143.51
11/7/12 22.57 140.25
11/8/12 22.32 138.58
11/9/12 22.14 138.6
11/12/12 22.23 138.87
11/13/12 22.02 138.32
11/14/12 21.84 136.58
11/15/12 21.85 136.28
11/16/12 21.7 136.84
11/19/12 22.21 139.74
11/20/12 22.38 139.79
11/21/12 22.47 140.08
11/23/12 23.14 141.83
11/26/12 23.14 141.78
11/27/12 23.08 140.93
11/28/12 23.26 142.01
11/29/12 23.39 142.71
11/30/12 23.52 142.71
12/3/12 23.61 142.04
12/4/12 23.76 141.8
12/5/12 23.77 142.06
12/6/12 23.85 142.5
12/7/12 23.72 143
12/10/12 23.76 143.13
12/11/12 24.03 143.96
12/12/12 24.18 144.16
12/13/12 24.09 143.26
12/14/12 24.28 142.76
12/17/12 24.38 144.34
12/18/12 24.63 146.05
12/19/12 24.61 144.03
12/20/12 24.73 144.83
12/21/12 24.57 143.51
12/24/12 24.48 143.06
12/26/12 24.52 142.39
12/27/12 24.61 142.25
12/28/12 24.26 140.64
12/31/12 24.7 143.14

Indifference Curve

0 0.70710678118654757 1 1.2247448713915889 1.4142135623730951 1.5811388300841898 1.7320508075688772 1.8708286933869707 2 2.1213203435596424 2.2360679774997898 2.3452078799117149 2.4494897427831779 2.5495097567963922

Standard Deviation

Expected Return