Consider the following investments.

Expected return Standard deviation

Portfolio A 10% 5%

Portfolio B 14% 4%

Portfolio C 17% 8%

Required: (1). If L R (the level of return which your portfolio would not be below) equals 5%, which is your preferred portfolio for your investment according to Roys safety-first criterion? Assume returns are continuously distributed

(2). If the Kataoka probability equals 5%, which is your preferred portfolio for your investment according to Kataokas safety-first criterion?