Question: CASE 3 (6 marks): The following graph shows the efficient frontier for the portfolio containing x, y and z securities 3 a) Which combination of

CASE 3 (6 marks): The following graph shows the efficient frontier for the portfolio containing x, y and z securities 3 a) Which combination of the portfolio is most efficient or the closest to optimal, A, B, C or D and why? Additionally, explain the difference between each of these portfolios. 3 b) If the star represents portfolio E, is it better than B? Explain why or why not. 3 c) If the triangle represents portfolio F, is it better than C? D? Explain why or why not. CASE 3 (6 marks): The following graph shows the efficient frontier for the portfolio containing x, y and z securities 3 a) Which combination of the portfolio is most efficient or the closest to optimal, A, B, C or D and why? Additionally, explain the difference between each of these portfolios. 3 b) If the star represents portfolio E, is it better than B? Explain why or why not. 3 c) If the triangle represents portfolio F, is it better than C? D? Explain why or why not

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