Two Assets Have the Following Expected Returns and Standard Deviations

Multiple Choice

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: An investor with a risk aversion of A = 3 would find that ________ on a risk-return basis.

A) only Asset A is acceptable
B) only Asset B is acceptable
C) neither Asset A nor Asset B is acceptable
D) both Asset A and Asset B are acceptable