讲解：CFRM 415、Financial Markets、Py

CFRM 415 - Introduction to Financial MarketsAssignment 5Due: May 17, 2019 - 11:59 pmLate submissions will receive an automatic grade of zero.Question 1: i) Suppose an investor has initial wealth W0 and has the opportunity for an investment suchthat the end-of-period wealth is W = W0 + H. If the investor uses exponential utiliy, show that WC W0does not depend on W0.ii) Suppose an investor has initial wealth W0 and has the opportunity for an investment such that theend-of-period wealth is W = HW0. If the iCFRM 415作业代写、代做Financial Markets作业的、Python/Java，c/c++编程设计作业代nvestor uses power utility show that WCW0does not depend onW0.Question 2: Let W, a random variable, represent the amount of future wealth held by an investor, andlet u1 and u2 be two different utility functions. The certainty equivalent of W under u1 is denoted Wand the certainty equivalent of W under u2 is denoted W. Using the definition of certainty equivalentand the definition of equivalent utility functions, show that if u1 ～ u2 then W You may assumeu1 and u2 are strictly increasing.1转自：http://www.7daixie.com/2019051813955114.html