Asset a Has an Expected Return of 15% and a Reward-To-Variability

Multiple Choice

Asset A has an expected return of 15% and a reward-to-variability ratio of .4.Asset B has an expected return of 20% and a reward-to-variability ratio of .3.A risk-averse investor would prefer a portfolio using the risk-free asset and ______.

A) asset A
B) asset B
C) no risky asset
D) can't tell from the data given