An Investor Estimates the Expected Return of Option a to Be

Multiple Choice

An investor estimates the expected return of option A to be $180,000 and its expected utility to be 400. The expected return of option B is $120,000, and its expected utility is 450. The investor should:

A) select option A because it has the higher expected return.
B) select option B because it has the higher expected utility.
C) select option A because 180,000/120,000 > 450/400.
D) be indifferent between option A and option B.
E) There is not enough information to answer this question.