Problem 5. Consider the following utility function for an individual: U = E(r) A0%. Suppose there are 4 types of financial securities one can choose to invest in. Expected return and standard deviation of each of these securities are as follows: i) E(ri) = 12,01 = .3, ii) E(ra) = .15,02 = .5, iii) E(rs) = 21,03 = .16. iv) E(ra) = 24,04 = 22 (a) Which of these four securities would a risk averse investor with A = 4 choose to invest, given that he can only invest in one of these four securities? (b) Which of these four securities would a risk neutral investor choose to invest, given that he can only invest in one of these four securities? (c) Intuitively, why would i) or ii) may not be your optimal choice