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Use the following data in answering C FA Questions 46. Investme nt 2 3 Expected Return, Etr) .12 .15 .21 Standard Deviation, .30 .16

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Use the following data in answering C FA Questions 46. Investme nt 2 3 Expected Return, Etr) .12 .15 .21 Standard Deviation, .30 .16 21 I nvestor "satisfaction" with portfolio increases With exFted return and decreases with variance according to the "utility- formula: h. 4. Based on thc formula for investor satisfaction or "utility," which investment would you select if you were risk averse with A = 4? (LO 5-4) 5. Based on thc formula above, which investment would you select if Ask a hc neutral? (LO 5-4)

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