Which of the following statements is true?

		A risk averse investor will never take highly risky investments.
		A risk neutral investor prefers investments with lower risk, all else equal.
		A risk loving investor likes options with higher risk, all else equal.
		A risk averse investor does not require compensation for taking risk.

The expected return on Johns complete portfolio is 15%. The volatility of Johns complete portfolio is 20%. The risk free rate is 5%. What is Johns coefficient of risk aversion?

		3
		1.3
		0.9
		2.5