You have used the wealth model to calculate the expected wealth levels in 30 years of two portfolios.Both alternatives have and expected wealth level of $2,400,000.

Alternative A has a 5% Value-at-risk of $325,000.

Alternative B has a 5% VAR of $450,000.

Which alternative is preferred by a risk adverse person?

a.They are equal, one is not preferred over another

b.Alternative B

c.Impossible to tell

d.Alternative A