1. Security A will yield a 6% return in one year. Security B will either yield a 3% return or a 9% return in year with equal probability. Which is the better investment based on risk aversion and why?

		Security A because it has a higher expected return with less risk
		Security B because it has a higher expected return with less risk
		Security A because it has an equivalent expected return with less risk
		Security B because it may potentially produce a 9% return