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An investor adopts mean-variance expected utility E(U)=E(rP)AVar(rP) as her investment objective, where rP is the future return of the investment portfolio and A reflects the

An investor adopts mean-variance expected utility E(U)=E(rP)AVar(rP) as her investment objective, where rP is the future return of the investment portfolio and A reflects the investors risk tolerance. If the investor is more conservative (or less able to tolerate risk) than average investors, then A in the objective function should be ____.

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a large positive number compared to average investor

a small positive number compared to average investor

zero

a negative number

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