2 questions. Two photos for question 1

Moving to another question will save this response. Question 1 Suppose you can choose from two securities, a risk-free T-bill with 6% expected return and a risky ste function: U = E[t] Ao212. Suppose you are a risk averse investor and your risk aversion coefficient is a. T-bill, due to its lower risk. b. T-bill, due to its higher utility. c. Stock, due to its higher return. d. Stock, due to its higher utility 20 888 EL # 1 2 3 $ 4 % 5 6 Q W E R A S F. Close Wir Question of 3.333 points ected return and a risky stock with 10% expected return and 10% standard deviation. Your utility is determined by the following ar risk version coefficient is A - 4. Which security do you prefer? MacBook 33 31 ( 9 6 7 00 O Y U H J K. L B N M A Moving to another question will save this response. Question 2 Which of the following statements is TRUE? a. For risk-averse investors, lower expected return and/or higher risk leads to higher utility b. For risk lovers, lower expected return and/or lower risk leads to lower utility. c. For risk-neutral Investors, expected return and risk do not affect utility d. A rational investor should maximize his/her return from the investments, e. None of the above choices is correct. 30 888 @ 2 3 4 % 5 6 W E R T S