Professor Farhat, my professor in my Finance course provided me with a formula for Risk Aversion that looks like the following: A = ( E(rp) - rf ) / (1/2 * σ^2) Your formula look just like this except for the 1/2 in the denominator. Do you know why there is a 1/2 in the formula provided to me by my professor?
LEt this be a testament to how unsupportive this guy is everyone. Won't even answer a single question. I would recommend you all find a different teacher than this guy.
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Professor Farhat, my professor in my Finance course provided me with a formula for Risk Aversion that looks like the following:
A = ( E(rp) - rf ) / (1/2 * σ^2)
Your formula look just like this except for the 1/2 in the denominator. Do you know why there is a 1/2 in the formula provided to me by my professor?
LEt this be a testament to how unsupportive this guy is everyone. Won't even answer a single question. I would recommend you all find a different teacher than this guy.