3. Which of the following statements is(are) true? 1) Risk-averse investors reject investments that are fair games. II) Risk-neutral investors judge risky investments only by the expected returns. III) Risk-averse investors judge investments only by their riskiness. IV) Risk-loving investors will not engage in fair games. A. I only B. II only C. I and II only D. II and III only E. II, III, and IV only 5. Assume an investor with the following utility function: U= E(r) - 3/2(2). To maximize her expected utility U, she would choose the asset with an expected rate of return of standard deviation of _, respectively. and a A. 12%; 20% B. 10%; 15% C. 10%; 10% D. 8%; 10% 6. A portfolio has an expected rate of return of 0.15 and a standard deviation of 0.15. The risk-free rate is 6%. An investor has the following utility function: U= E() -(4/2)s2. Which value of A makes this investor indifferent between the risky portfolio and the risk-free asset? A. 5 B. 6 C. 7 D. 8