[All Steps] Jenny is an investor in the stock market. She cares about both the expected value and the standard deviation of her investment. Currently she
Question: Jenny is an investor in the stock market. She cares about both the expected value and the standard deviation of her investment. Currently she is invested in a security that has an expected value of $15,000 and a standard deviation of $5,000. This places her on an indifference curve with the following formula: Expected Value = $10,000 + Standard Deviation.
- Is Jenny risk averse? Explain.
- What is Jenny’s "certainty equivalent" for her current investment? What does this mean?
- What is the risk premium on her current investment?
Deliverable: Word Document 
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