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Which investment would select if were risk neutral

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Reference no: EM132569776

Use the below information to answer the following questions:

Investment             Expected Return E(r)           Standard Deviation

1                                  .12                                    .3

2                                   .15                                  .5

3                                    .21                                .16

4                                       .24                               .21

U-E(r) - (A/2)s^2

Question 1: Which investment would you select if you were risk neutral?

A. 1

B. 2

C. 3

D. 4

E. Cannot be determined from the information given.

Reference no: EM132569776

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