Question: Consider the following assets with different expected returns and risks: Security A: E(r) = 0.15; Variance = 0.02 Security B: E(r) = 0.18; Variance =

 Consider the following assets with different expected returns and risks: Security

Consider the following assets with different expected returns and risks: Security A: E(r) = 0.15; Variance = 0.02 Security B: E(r) = 0.18; Variance = 0.01 Security C: E(r) = 0.13; Variance = 0.02 Security D: E(r) = 0.14; Variance = 0.03 For a rational investor with mean-variance preference, which security will this investor choose? OC OD O A OB

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