Question: 9. If an investors utility function is expressed as U = E (r) _ 21 A 2 and the measure for risk aversion

9. 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 4, the risk-averse investor is most likely to choose:

A. Investment 1.

B. Investment 2.

C. Investment 3.

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