QUESTION 1 4 points Save Answer 1.You choose to set up an investment portfolio. Your utility can be described as U-E(r)-1/2*A*VA2, where r is the return of the portfolio, A is your risk-aversion coefficient, and V is the volatility of the portfolio return You are considering 4 possible setups for your portfolio with the following properties: a) E(r) 0.05; volatility 0 b) E(r) 0.07vty 0.1 c) E(r)- 0.1; volatility 0.2 d) E(r) 0.14; volatility -0.4 Assuming the risk-free rate is 0.05, what is the Sharpe Ratio of portfolio b)? Which has a higher Sharpe Ratio, portfolio c) or portfolio d)? (please write one of the following: d If your risk-aversion coefficient -0, which portfolio out of the 4 would you prefer? please write one of the following: a b c d If your risk-aversion coefficient 3, which portfolio out of the 4 would you prefer? (please write one of the following: abc d