Question: 1) What is the justification for diversification? (5 pts) Using the following figure, please answer questions 2-4: E B A D 2) Which point describes

1) What is the justification for diversification? (5 pts) Using the

1) What is the justification for diversification? (5 pts) Using the following figure, please answer questions 2-4: E B A D 2) Which point describes the portfolio with the lowest volatility? (5 pts) 3) At what point would you have the most efficient portfolio? (5 pts) 4) Which portfolio would you prefer, B or D and why? (5 pts)

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