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5 0/3 points and 43% Consider the following risk and return characteristics of these four investments: Expected Standard Investment Return E(r) Deviation 1 0.12 0.3

5 0/3 points and 43% Consider the following risk and return characteristics of these four investments: Expected Standard Investment Return E(r) Deviation 1 0.12 0.3 2 0.15 0.5 3 0.21 0.16 4 0.24 0.21 U = E(r) (A/2)s, where A = 4.0. Which investment would you select if you were risk neutral? 1 Cannot be determined from the information given. 3 2 4 X (no answer)

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