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1. A situation exists in which there are the following five investment possibilities. investment expected return risk A 6.50% 1.90% B 10.11% 11.50% 7.54% 8.42%

1. A situation exists in which there are the following five investment possibilities. investment expected return risk A 6.50% 1.90% B 10.11% 11.50% 7.54% 8.42% D 9.42% 12.65% E 7.00% 1.60% What can we say about the choice of a risk-averse, risk-loving, and risk-neutral individual? Explain. (12 points)

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