two assets have the following expected returns in standard deviations when the risk free rate is 2%:

an investor with a risk a version of a equals three would find that___on a risk return basis.

#1. (0.5pts) Two assets have the following expected returns and standard deviations when the risk-free rate is 2% : Asset A: E(ri)=10%;i=20% Asset B: E(ri)=18%;n=22% An investor with a risk aversion of A=3 would find that on a risk-return basis. (Degree of Risk Aversion, A= Risk Premitm / Variance of portfolio return) A) only asset A is acceptable B) only asset B is acceptable C) neither asset A nor asset B is acceptable D) both asset A and asset B are acceptable