Question: 7. If an investors utility function is expressed as U = E (r) _ 21 A 2 and the measure for risk aversion

7. If an investor’s utility function is expressed as U = E (r) − _ 21 A σ 2 and the measure for risk aversion has a value of −2, the risk-seeking investor is most likely to choose:

A. Investment 2.

B. Investment 3.

C. Investment 4.

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