1. Assume investors select stocks based on a preference function given as follows:

F = R ²/T

Where F is preference, R = rate of return, = standard deviation of return and T = degree of risk tolerance.

Stock	Expected ROR %	Standard deviation %
B	14	8
Q	18	10
V	15	6

1. Assume investors Jack and Sylvia have Ts of 20 and 50 respectively. Determine which stock each investor would select.
2. Assume instead investors select stocks by using Telsers safety first criteria with alpha of 5% and R_L of 5%. Rank the three stocks based on this criteria.