Assume the risk free rate = 4% What is the Sharpe ratio of the following securities? Which security would you select? Why? If your risk aversion (A) = 5. What security would you hold? How much of it would you hold? Security A: E(r) = 14%; Variance = 4% Security B: E(r) = 11%; Variance = 2.25% Security C: E(r) = 12%; Variance = 1% Security D: E(r) = 13%; Variance = 6.25%