Question: Use the below information to answer the following question. U = E(0)-(A/2)s, where A = 4.0. Investment Expected Return E(r) Standard Deviation 0.12 0.13 1

Use the below information to answer the following question. U =

Use the below information to answer the following question. U = E(0)-(A/2)s", where A = 4.0. Investment Expected Return E(r) Standard Deviation 0.12 0.13 1 2 0.15 0.15 3 0.21 0.16 4 0.24 0.21 Based on the utility function above, which investment would you select : Which investment would you select if you were risk neutral 2

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