Question: Based on the utility function (U = E(r) - (A/2) Var(r), where A = 6.), which investment would you select? A. cannot tell from the

Based on the utility function (U = E(r) - (A/2) Var(r), where A = 6.), which investment would you select?

	A.	cannot tell from the information given
	B.	1
	C.	2
	D.	4
	E.	3

Investment Expected Return E(r) Standard Deviation 1 0.12 0.3 2 0.15 0.5 3 0.21 0.16 4 0.24 0.21 Based on the utility function (U = E(r) - (A/2) Var(r), where A = 6.), which investment would you select? cannot tell from the information given A. B. 1 C. 2 D.4 E. 3

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