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A portfolio has an expected rate of return of 20% and a standard deviation of 0.25. The risk-free rate is 4%. An investor has the

A portfolio has an expected rate of return of 20% and a standard deviation of 0.25. The risk-free rate is 4%. An investor has the following utility function: U = E(r) (A/2)*s^2. Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset?

a. 5.12

b. 5

c. 8

d. 7.53

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