1. Assume an investor with the following utility function: U = E(r) 6/2(^2). To maximize her expected utility, she would choose the asset with an expected rate of return of _______ and a standard deviation of ________, respectively.

   	a.	21%; 16%
   	b.	15%; 5%
   	c.	24%; 21%
   	d.	12%; 30%