The reason variance in financial investments matters, even if you only care about expected utility, is that utility isn’t a linear function of money.
It’s not just that. Even if your utility function with regards to money were linear, it would still be wise to try to decrease variance, because high variance makes returns not compound as well.
It’s not just that. Even if your utility function with regards to money were linear, it would still be wise to try to decrease variance, because high variance makes returns not compound as well.
If you value yourself getting money in the future, then that should be taken into account in your utility function.
Not if you used the geometric mean