Which Asset Allocation is Best? Let's assume you can select from three asset allocations and that your risk aversion score is 3. You have $500,000, and the minimum return you need is $50,000. Which asset allocation do you choose if you want to maximize utility and minimize short-fall risk? Hint: to minimize the short-fall risk you want a high SF Ratio. Asset allocation A: expected return =35.5%, standard deviation 10.0% Asset allocation B: expected return =10.0%, standard deviation 5.0% Asset allocation C: expected return =40.0%, standard deviation 20.0% Asset allocation A