Question: Consider the following table that reports expected returns (ERS) for various asset classes and portfolio weights (PWs) for two different portfolios. Cash Fixed Interest

Consider the following table that reports expected returns (ERS) for various asset classes and portfolio weights (PWs) for two different portfolios. Cash Fixed Interest (Bonds) Property Shares Expected Return (%) 3 5 7 11 Weights for Portfolio 1 (%) 5 10 15 70 Weights for Portfolio 2 (%) 20 30 20 30 calculate the coefficient of variation (CV) for both portfolios if the standard deviation of Portfolio 1 is 7.50% and the standard deviation of Portfolio 2 is 6.25%. Which portfolio should a risk averse investor choose?

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