George has

$$$$6$ comma $0006,000$

to invest in a mutual fund. The expected return on mutual fund A is

$1515$

percent and the expected return on mutual fund B is

$99$

percent. Should George pick mutual fund A or fund$$ B$?$

Part $2$

A$.$

If George is$$ young, he should pick mutual fund A because it has a higher expected$$ return, regardless of risk.

B$.$

$$Clearly$,$ he should pick mutual fund A because it has a higher expected return.

C$.$

Since individuals are risk$$ averse, he should pick fund B because its lower expected return implies lower risk.

D$.$

There is not enough information to make the determination because the decision also depends on the variability of the expected return and$$ George's attitude toward risk.