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Asset A has an expected return of 10% and a reward-to-variability ratio of 0.5. Asset B has an expected return of 14% and a reward-to-variability

Asset A has an expected return of 10% and a reward-to-variability ratio of 0.5. Asset B has an expected return of 14% and a reward-to-variability ratio of 0.4. A risk-averse investor would prefer a portfolio using the risk-free asset and ________. A) asset A B) asset B C) no risky asset D) The answer cannot be determined from the data given.

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