An efficient portfolio is one which has the highest return for a given level of risk or has the lowest level of risk for a given return. The correlation coefficient between ABC and TSX is 0.938. What is the risk (standard deviation) and return for a portfolio made up 20% ABC and 80% TSX? What is the Sharpe ratio for both the portfolio (20% ABC and 80% TSX) and the TSX alone when the risk free rate is 4%? Is the portfolio (20% ABC and 80% TSX) a more or less efficient portfolio compared to the TSX alone? Please explain your answer. (6 marks) An efficient portfolio is one which has the highest return for a given level of risk or has the lowest level of risk for a given return. The correlation coefficient between ABC and TSX is 0.938. What is the risk (standard deviation) and return for a portfolio made up 20% ABC and 80% TSX? What is the Sharpe ratio for both the portfolio (20% ABC and 80% TSX) and the TSX alone when the risk free rate is 4%? Is the portfolio (20% ABC and 80% TSX) a more or less efficient portfolio compared to the TSX alone? Please explain your answer. (6 marks)