Question: Based on the formula below, which investment would you select if you were risk neutral? Investor satisfaction with portfolio increases with expected return and decreases

Based on the formula below, which investment would you select if you were risk neutral?

Investor "satisfaction" with portfolio increases with expected return and decreases with variance according to the "utility" formula: U = E(r) - Â½ AÏƒ2 where A = 4.

Expected Return, E(r) .12 .15 21 24 Investment Standard Deviation, .16 21

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