Assume an Investor with the Following Utility Function: U =

Multiple Choice

Assume an investor with the following utility function: U = E(r) - 3/2(s2) . To maximize her expected utility, she would choose the asset with an expected rate of return of _______ and a
Standard deviation of ________, respectively.

A) 12%; 20%
B) 10%; 15%
C) 10%; 10%
D) 8%; 10%