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

question 6

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.
Which investment would you select if you were risk neutral?

• A) 1
• B) 2
• C) 3
• D) 4
• E) Cannot be determined from the information given.

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Definitions:

Value Chain Analysis

A strategic analysis tool that maps out the sequence of activities an organization performs to create value for its customers.

Continuous Improvement

An ongoing effort to improve products, services, or processes through incremental and breakthrough improvements.

Core Processes

Fundamental business processes that are critical to an organization's operation and delivery of its products or services to customers.

Organisation's Mission

The fundamental purpose that defines an organization's core goals and directs its strategic planning.