Reference no: EM132570878

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

Question1 : 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.