InvestmentExpected Return E(r)Standard Deviation10.120.320.150.530.210.1640.240.211. U = E(r) − (A/2)s2, where A = 4.0.Based on the utility function above, which investment would you select?
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Investment
Expected Return E(r)
Standard Deviation
1
0.12
0.3
2
0.15
0.5
3
0.21
0.16
4
0.24
0.21
1. U = E(r) − (A/2)s2, where A = 4.0.Based on the utility function above, which investment would you select?