There are three risky assets described in the table below: Asset 1 2 3 Expected Return Standard deviation 5% 7% 10% 20% 30% There are three investors X, Y, and Z whose preferences are represented by the utility function U = E(r) - 0.5Ao, where A is the risk-aversion coefficient. Among the three investors, Investor X is the least risk-averse, while investor Z is the most risk-averse. The risk-free rate is 2%. If they intend to form a complete portfolio of the risk- free asset and one of the three risky assets, which risky portfolio will be picked by investors X, Y, and Z respectively? 6.5% O a. There is no sufficient information to tell O b. X:Asset 2; Y: Asset 2; Z: Asset 2 O C. X:Asset 1; Y: Asset 1; Z: Asset 1 O d. X: Asset 3; Y: Asset 2; Z: Asset 1 Oe. X: Asset 3; Y: Asset 3; Z: Asset 3

There are three risky assets described in the table below: There are three investors X,Y, and Z whose preferences are represented by the utility function U=E(r)0.5A2, where A is the risk-aversion coefficient. Among the three investors, Investor X is the least risk-averse, while investor Z is the most risk-averse. The risk-free rate is 2%. If they intend to form a complete portfolio of the riskfree asset and one of the three risky assets, which risky portfolio will be picked by investors X, Y, and Z respectively? a. There is no sufficient information to tell b. X :Asset 2;Y : Asset 2;Z : Asset 2 c. X :Asset 1;Y : Asset 1;Z : Asset 1 d. X : Asset 3;Y :Asset 2; Z : Asset 1 e. X : Asset 3;Y : Asset 3;Z : Asset 3