Use the Below Information to Answer the Following Question U = E(r) ? (A/2)s², Where a = 4

Multiple Choice

Use the below information to answer the following question. $\begin{array}{llcc}\text { Investment } &\text { Expected Return } E(r) &\text { Standard Deviation }\\1&0.12&0.13\\2&0.15&0.15\\3&0.21&0.16\\4&0.24&0.21\\\end{array}$

U = E(r) ? (A/2) s², where A = 4.0.
The variable (A) in the utility function represents the

A) investor's return requirement.
B) investor's aversion to risk.
C) certainty-equivalent rate of the portfolio.
D) minimum required utility of the portfolio.