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Based on the utility function (U = E(r) - (A/2) Var(r), where A = 6.), which investment would you select? A. cannot tell from the

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Based on the utility function (U = E(r) - (A/2) Var(r), where A = 6.), which investment would you select?

A.

cannot tell from the information given

B.

1

C.

2

D.

4

E.

3

Investment Expected Return E(r) Standard Deviation 1 0.12 0.3 2 0.15 0.5 3 0.21 0.16 4 0.24 0.21 Based on the utility function (U = E(r) - (A/2) Var(r), where A = 6.), which investment would you select? cannot tell from the information given A. B. 1 C. 2 D.4 E. 3

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