Uncertainty

Stock A has a high expected return and the return has a high variance. Stock B has a low expected return and the return has a low variance. 3) If Jane chooses stock B she must be risk adverse. b) If Jane chooses stock A she must be risk neutral or risk loving. c) Jane's choice between stocks A and B cannot be determined in the absence of knowing Jane's utility function. d) Expected utility must be higher than expected return for both stocks