Question: Based on the utility function: U=E[r]-1/2 A^2 If your coefficient of risk aversion = 4, which of the following investments would you select? A B

Based on the utility function:

U=E[r]-1/2 A^2

If your coefficient of risk aversion = 4, which of the following investments would you select?

A

B

C

D

E[r]

12%

15%

21%

24%

Std deviation

13%

15%

16%

21%

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