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Use the below information to answer Questions 3-4. Investment Expected return Standard deviation 1 0.12 0.3 2 0.15 0.5 3 0.21 0.16 4 0.24 0.21

Use the below information to answer Questions 3-4. Investment Expected return Standard deviation 1 0.12 0.3 2 0.15 0.5 3 0.21 0.16 4 0.24 0.21 3. Which investment would you select if you were risk neutral? A. 1 B. 2 C. 3 D. 4 4. Which investment would you select if you were risk averse? Assume the index of risk aversion = 4. A. 1 B. 2 C. 3 D. 4

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