For the next question, assume an investor with the following utility function: U- E(r)-32(s) 12. To maximize her expected utility, she would choose the asst with an expected rate of return of A. 12%, 20% and a standard deviation of _ B. 10%; 15% C, 1096; 10% D. 8%-10% E. none of the above 13. Which of the following statements regarding the Capital Allocation Line (CAL,)is false? A. The CAL shows risk-return combinations. B. The slope of the CAL equals the increase in the expected return of the complete portfolio per unit of additional standard deviation. C. The slope of the CAL is also called the reward-to-volatility ratio. D. The CAL is also called the efficient frontier of risky assets in the absence of a risk- free asset. For the next question, assume you invest $100 in a risky asset with an expected rate of return of 0.12 and a standard deviation of 0.15 and a T-bill with a rate of return of 0.05. 14. The slope of the Capital Allocation Line formed with the risky asset and the risk- free asset is equal to A. 0.4667. B. 0.8000. C. 2.14 D. 0.41667 E. Cannot be determined. 15. A reward-to-volatility ratio is useful in: A. measuring the standard deviation of returns B. understanding how returns increase relative to risk increases. C. analyzing returns on variable rate bonds. D. assessing the effects of inflation. E. none of the above