Question: 3. Answer the following questions using the data in the table below: Risk Free Rate = 3% Expected Standard Portfolio Return Deviation Apple 8% 10%

3. Answer the following questions using the data in the table

3. Answer the following questions using the data in the table below: Risk Free Rate = 3% Expected Standard Portfolio Return Deviation Apple 8% 10% Oranges 13% 18% Pears 16% 26% b) What combination on the capital allocation line will produce a return of 10%? Comment on this portfolio (weighting); with regards to what it represents and how you would achieve it (construction) c) What is the risk (as measured by standard deviation) of the portfolio you calculated in b? 3. Answer the following questions using the data in the table below: Risk Free Rate = 3% Expected Standard Portfolio Return Deviation Apple 8% 10% Oranges 13% 18% Pears 16% 26% b) What combination on the capital allocation line will produce a return of 10%? Comment on this portfolio (weighting); with regards to what it represents and how you would achieve it (construction) c) What is the risk (as measured by standard deviation) of the portfolio you calculated in b

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