QUESTION 4

1. Consider a risky portfolio, A, with an expected rate of return of 0.16 and a standard deviation of 0.25, that lies on a given indifference curve. Which one of the following portfolios is not likely to lie on the same indifference curve for a risk-averse investor with a mean-variance utility function?

   	a.	Expected return = 0.12; Standard deviation = 0.10
   	b.	Expected return = 0.10; Standard deviation = 0.20
   	c.	Expected return= 0.15; Standard deviation = 0.20
   	d.	Expected return = 0.20; Standard deviation = 0.15
   	e.	Expected return = 0.10; Standard deviation = 0.10