how to determine the best investment

[rbcc]

Hi,

I just have a quick question:

Given the expected return, standard devation, correlation and risk free rate of 2 assets, how can you determine which asset offers the best investment opportunity?

-rbcc

 

[tkhunny]

You'll have to factor in your personal utility or risk aversion function.

There are MANY ways to do this. Many seem objective, but are only mathematical reflistions fo opinions.

What are your choices and how will you evaluate them?