8. A client contacts you regarding choosing one investment option based on two risky assets, X & Y.
Your client only wants to invest in one of these risky assets. The risky assets investment will be combined with a risk free asset (expected return 2 percent).
The expected return for X is 13 percent (standard deviation 20 percent) and the expected return for Y is 18 percent (standard deviation 30 percent).
Without knowing the client's risk tolerance, which risky asset do you recommend?