You are going to invest all of your funds in one of three projects with the following distribution of possible returns:

Project 1

Probability Return Stand. Deviation Beta

50% Chance 22% 12% 1.1

50% Chance -4%

Project 2

Probability Return Stand. Deviation Beta

30% Chance 36% 19.5% 1.0

40% Chance 10.5%

30% Chance -20%

Probability Return Stand. Deviation Beta

10% Chance 28% 12% 1.2

70% Chance 18%

20% Chance -8%If you are a risk averse investor, which one should you choose?

A) Project 1

B) Project 2

C) Project 3

D) Either Project 1 or Project 2 because they have the same expected return.