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Investment Expected Retain, E(r) Standard lite-atten, c 1 .12 .3 2 .15 .SU 3 .21 .15 4 .24 .21 lnvestcr setistimtien with [nitfclic nicreases with

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Investment Expected Retain, E(r) Standard lite-atten, c 1 .12 .3 2 .15 .SU 3 .21 .15 4 .24 .21 lnvestcr \"setistimtien\" with [nitfclic nicreases with expected return and decreases with variance according to the ility\" fcnnula: U = Hr) - V: A01 where A = 4. 4. Based on the fcnnula fer investcr satisfaction or \"utility," which invesnnent would you select if you were risk aveIse with A = dL 5-4] 5. Based on the formula abuse which imreehnent Would you select ifycu were risk neutral?(LO 5-4)

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