Question: Guestion Completion status: QUESTION 1 table [ [ Investment , Expected Return E ( r ) , Standard Deviation ] , [ 1 ,

Guestion Completion status:
QUESTION 1
\table[[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]]
U=E(r)-(A2)Var(r), where A=5
Based on the utility function above, which investment would you select?
A.1
B.2
C.3
D.4
E. cannot tell from this information given
QUESTION 2
Given an optimal risky portfolio with expected return of 20% and standard deviation of 30% and a risk free rate of 8%, what is the slope of the best feasible CAL?
A.0.45
B.0.14
c.0.33
D.0.40
E.0.36
 Guestion Completion status: QUESTION 1 \table[[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]] U=E(r)-(A2)Var(r), where

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