Use the below information to answer the following question.

Investment	Expected Return E(r)			Standard Deviation
1		0.12			0.13
2		0.15			0.15
3		0.21			0.16
4		0.24			0.21

U = E(r) (A/2)s², where A = 4.0.

The variable (A) in the utility function represents the

Multiple Choice

• minimum required utility of the portfolio.

• investor's aversion to risk.

• investor's return requirement.