There are 3 possible investments investment annual return standard deviation sharpe ratio utility index 1 0 1 0 2 2 0 15 0 35 3 0 2 0 3 the risk free rate is 1 obtain the shape ratio for each investment based on the utility index, which of the three investments would the investor prefer (assume A 2) Explain

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There are 3 possible investments investment annual return standard deviation sharpe ratio utility index 1 0.1 0.2 2 0.15 0.35 3 0.2 0.3 the risk

There are 3 possible investments

investment	annual return	standard deviation	sharpe ratio	utility index
1	0.1	0.2
2	0.15	0.35
3	0.2	0.3

the risk free rate is 1%. obtain the shape ratio for each investment. based on the utility index, which of the three investments would the investor prefer (assume A=2). Explain

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