Question: Ms. Sharp is looking at a number of different types of investments for her portfolio. She identifies eight possible investments. a. Graph the data in

Ms. Sharp is looking at a number of different types of investments for her portfolio. She identifies eight possible investments.

a. Graph the data in a manner similar to Figure. Use the axes that follow for your data.

b. Draw a curved line representing the efficient frontier.
c. What two objectives do points on the efficient frontier satisfy?
d. Is there one point on the efficient frontier that is best for allinvestors?

Risk 2% (e) 2.5(f) 3.0 (g) 4.2(h) Return Return Rislk 11% 14% 16 15 18 5.0% 5.0 5.8 7.0 13 13 Retun (percent) 17 16 15 14 13 12 10 0 12 3 4 5 6 7 Risk (percent

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