Question: Construct a reasonable, but hypothetical, graph that shows risk, as measured by portfolio standard deviation, on the x-axis and expected rate of return on the

Construct a reasonable, but hypothetical, graph that shows risk, as measured by portfolio standard deviation, on the x-axis and expected rate of return on the y-axis. Now add an illustrative feasible (or attainable) set of portfolio, and show what portion of the feasible set is efficient. What makes a particular portfolio efficient? Don’t worry about specific values when constructing the graph-merely illustrate how things look with “reasonable” data.

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