Question: You have a mean - variance quadratic utility function, i . e . , ( U = E [ r ] - frac

You have a mean-variance quadratic utility function, i.e.,\( U=E[r]-\frac{1}{2} A \sigma^{2}\). The risk-free rate is \(2\%\). You are considering which of the following portfolio you want to invest in:
A low-risk portfolio with a risk premium of \(3\%\) and standard deviation of \(4\%\)
A medium-risk portfolio with a risk premium of \(5\%\) and standard deviation of \(7\%\)
A high-risk portfolio with a risk premium of \(7\%\) and standard deviation of \(11\%\)
Which of one is most desirable for you if you have a coefficient of risk aversion of 10?
The high-risk portfolio
The low-risk portfolio
The medium-risk portfolio
You have a mean-variance quadratic utility function, i.e.,\( U=E[r]-\frac{1}{2} A \sigma^{2}\).

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