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A portfolio has an expected rate of return of 23 percent and a standard deviation of 19 percent. The risk-free rate is 4 percent. An

A portfolio has an expected rate of return of 23 percent and a standard deviation of 19 percent. The risk-free rate is 4 percent. An investor has a risk aversion, A, of 4 and assesses risky assets as if her risk attitude reflects the following utility function:  U = E(r) - 12Aσ2.  What is the utility of the risky portfolio? 


Given the utility function below, which investment would you select and why? 

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