Question: Assume an investor with the following utility function: U = E(r) - 3/2(s?). = To maximize her expected utility, which one of the following investment

Assume an investor with the following utility function: U = E(r)

Assume an investor with the following utility function: U = E(r) - 3/2(s?). = To maximize her expected utility, which one of the following investment alternatives would she choose? a. Select one: A portfolio that pays 10% with a 60% probability or 5% with 40% probability. b. A portfolio that pays 10% with 40% probability or 5% with a 60% probability. A portfolio that pays 12% with 60% probability or 5% with 40% probability. d. A portfolio that pays 12% with 40% probability or 5% with 60% probability. C

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