Assume that stock returns for any stock i are well explained by the following index model:

ri,trf,t=i+i(rM,trf,t)+ei,t Given the following expected returns, betas, and standard deviations, which ONE of the following assets below is most preferred by a risk-neutral investor? Note that rf=5% for all t, and i=0 for all assets listed below.

Asset	E[ri]		Total Standard Deviation
A	8%	0.3	15%
B	19%	1.4	34%
C	30%	2.5	62%
D	27%	2.2	71%
Market	15%	1	21%

Group of answer choices

Not enough information to tell

D

B

The Market

A

C