U = E(r) - (A/2)²,where A = 4.0. Which investment would you select if you were risk neutral?

Select one:a.

2

b.

1

c.

3

d.

Cannot tell from the information given

e.

4

Investment Expected Return E(r) Standard Deviation 1 0.3 0.12 0.15 2 0.5 3 0.21 0.16 4 0.24 0.21