Peter Voll is a broker at Riskoff Capital. He is comparing three funds to recommend to...

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Peter Voll is a broker at Riskoff Capital. He is comparing three funds to recommend to his clients: HIVOL, VOLOL and LOVOL. Peter only knows the expected return and volatility of each fund: (20%, 25%) ; ( 17%, 15%); and (10%, 5%), respectively. The risk free rate rf = 5%. Based solely in this information, how should Peter rank these funds from the best to worst in terms of reward to risk? Carl is a portfolio manager at Sunset Retirement Funds. He is tweaking a new risky portfolio P called BRISK to sell to his clients in Palm Beach. Carl knows that the risk free rate is 2% and the Expected Return and the variance of the Portfolio BRISK are 8% and 144, respectively. What are the intercept and slope of the Capital allocation line (CAL) for combinations of the risk free asset and BRISK. Peter Voll is a broker at Riskoff Capital. He is comparing three funds to recommend to his clients: HIVOL, VOLOL and LOVOL. Peter only knows the expected return and volatility of each fund: (20%, 25%) ; ( 17%, 15%); and (10%, 5%), respectively. The risk free rate rf = 5%. Based solely in this information, how should Peter rank these funds from the best to worst in terms of reward to risk? Carl is a portfolio manager at Sunset Retirement Funds. He is tweaking a new risky portfolio P called BRISK to sell to his clients in Palm Beach. Carl knows that the risk free rate is 2% and the Expected Return and the variance of the Portfolio BRISK are 8% and 144, respectively. What are the intercept and slope of the Capital allocation line (CAL) for combinations of the risk free asset and BRISK.

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