IFoA CM2 Practice Questions - IFoA CM2 Financial Engineering And Loss Reserving Exam

Access More Questions

An investor's utility function is U(w) = ln(w). What does this functional form imply about the investor's attitude to risk?

Risk-averse with decreasing absolute risk aversion Risk-seeking, because U is increasing Risk-neutral, because the function is monotonic Risk-averse with increasing absolute risk aversion

Correct Answer:

Risk-averse with decreasing absolute risk aversion

Access more questions from this quiz

Continue to IFoA CM2 Practice Questions - IFoA CM2 Financial Engineering and Loss Reserving Exam for more practice questions and the full quiz experience.

Access More Questions