Question: Restaurant As average return is 15% and its standard deviation is 12% while Restaurant Bs average return is 12% and its standard deviation is 10%.

Restaurant As average return is 15% and its standard deviation is 12% while Restaurant Bs average return is 12% and its standard deviation is 10%.

a. A risk averse investor will select A as its return is greater than B

b. A risk averse investor will select B as its standard deviation is less than A.

c. A risk averse investor will select A as its standard deviation is greater B.

d. A risk averse investor may select A or B based on the investor degree of risk aversion.

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