4.18. Assume the risk-free rate is 1.5% and consider the information in the table below: Portfolio...

    

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4.18. Assume the risk-free rate is 1.5% and consider the information in the table below: Portfolio Expected Return Standard Deviation A 3.2% 2.7% |B 8.1% 9.9% C 9.8% 13.7% D 5.1% 6.2% E 10.7% 17% F 4.8% 6.1% a) Which of these six portfolios offers investors the best combination of risk and return? Justify your answer from a capital market perspective. 4.4 Exercises b) Use the formula + p=worf (1-0) 203 to determine your investment asset allocation. c) If you plan to invest $100,000, what is your investment strategy based on the information given in this exercise? 4.18. Assume the risk-free rate is 1.5% and consider the information in the table below: Portfolio Expected Return Standard Deviation A 3.2% 2.7% |B 8.1% 9.9% C 9.8% 13.7% D 5.1% 6.2% E 10.7% 17% F 4.8% 6.1% a) Which of these six portfolios offers investors the best combination of risk and return? Justify your answer from a capital market perspective. 4.4 Exercises b) Use the formula + p=worf (1-0) 203 to determine your investment asset allocation. c) If you plan to invest $100,000, what is your investment strategy based on the information given in this exercise?

Answer rating: 100% (QA)

a Among the given six portfolios Portfolio C offers the best combination of risk and return from a c... View the full answer