Question: Based on the graph, explain how we can see the tradeoff between risk and return and identify which stock you would prefer to combine with


G WIP) Portfolio 1 W(rf) Return Risk 0% 100% 0.2500% 0.0000% 10% 90% 0.3428% 0.4196% 20% 80% 0.4356% 0.8392% 3096 70% 0.5284% 1.2588% 40% 60% 0.6211% 1.6784% 50% 50% 0.7139% 2.0979% 60% 40% 0.8067% 2.5175% 70% 30% 0.8995% 2.9371% 80% 20% 0.9923% 3.3567% 90% 10% 1.0851% 3.7763% 100% 0% 1.1779% 4.1959% 110% -10% 1.2707% 4.6155% 120% -20% 1.3634% 5.0351% 130% -30% 1.4562% 5.4547% 140% -40% 1.5490% 5.874396 150% -50% 1.6418% 6.2938% 160% -60% 1.7346% 6.7134% 170% -70% 1.8274% 7.1330% 180% -80% 1.9202% 7.5526% 190% 90% 2.0130% 7.9722% 200% -100% 2.1057% 8.3918% 210% -110% 2.1985% 8.81149 220% - 120% 2.2913% 9.28109 280% 130% 2.884196 9.65064 W(p) Portfolio 2 Wirf) Return Risk 0% 100% 0.2500% 0.0000% 10% 90% 0.2524% 0.6341% 20% 80% 0.2548% 1.2681% 30% 70% 0.2571% 1.9022% 40% 60% 0.2595% 2.5363% 50% 50% 0.2619% 3.1703% 60% 40% 0.2643% 3.8044% 70% 30% 0.2666% 4.4384% 80% 20% 0.2690% 5.0725% 90% 10% 0.2714% 5.7066% 100% 0% 0.2738% 6.3406% 110% -10% 0.2762% 6.9747% 12096 -20% 0.2785% 76088% 130% -30% 0.2809% 8.2428% 140% -40% 0.2833% 8.8769% 150% -50% 0.2857% 9.5110% 160% -60% 0.2881% 10.1450% 170% -70% 0.290496 10.7791% 180% -8096 0.2928% 11 4131% 190% -90% 0.2952% 12.0472% 200% -100% 0.2976% 12.6813% 21096 -110% 0.2999% 13.3153% 220% -120% 0.3023% 13.949496 280% -130% 0.3047% 145835% 3.0000% 2.5000% 2.0000% Saeeeeeee Rreturn 1.5000% 1.0000% Portfolio 1 ABOK Portfolio 2 QFLS 0.5000% 0.0000% 0.0000% 5.000056 10.0000% 15.0000% 20.0000% Risk o 5) Based on the graph, explain how we can see the tradeoff between risk and return and identify which stock you would prefer to combine with the risk-free asset. What motivates your preference
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