Investment Expected Return E{r) Standard Deviation 1 .12 .30 2 .15 .50 3 .21 .16 4 .24 .21 Investor \"satisfaction\" with portfolio increases with expected return and decreases with variance according to the \"utility\" formula: U=E(r) H3110: whereA= 4. Q15. Based on the formula for investor satisfaction or \"utility,\" which investment would you select if you were risk averse with A =4? Q16. Based on the formula above, which investment would you select if you were risk neutral? Q1?. The variable ( A] in the utility formula represents the: a. Investor's return requirement. 1). Investor's aversion to risk. (3. Certainty equivalent rate of the portfolio. (1'. Preference for one unit of return per four units of risk