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Part II: Analytical Problems (28 pts.) 1. (3 pts.) CFA Preparation Problem H4: Investor satisfaction increases with expected return and decreases whith warianco apenrdino in

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Part II: Analytical Problems (28 pts.) 1. (3 pts.) CFA Preparation Problem H4: Investor "satisfaction" increases with expected return and decreases whith warianco apenrdino in the following formula: U=E(r)1/2A2 where A=4. a. (2 pts.) Based on the formula for investor satisfaction or "utility", compiete the table above for an investor with a risk-aversion parameter of A=4. Select the best portfolio for this investor. b. (1 pt.) What portfolio would you select if the investor were risk-neutral

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