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Glossary > U > "Utility function" Definition

Utility function

A mathematical expression that assigns a value to all possible choices. In portfolio theory, the utility function expresses the preferences of economic entities with respect to perceived risk and expected return.

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Utility function - A mathematical expression that assigns a value to all possible choices. In portfolio theory, the utility function expresses the preferences of economic entities with respect to perceived risk and expected return.

Utility function : a mathematical expression that assigns a value to all possible choices. in portfolio theory, the utility function expresses the preferences of economic entities with respect to perceived risk and expected return.