Question: Question 1: I am interested in constructing the best possible portfolio from a set of securities, S1, S2, and S3, each of which has an

Question 1: I am interested in constructing the best possible portfolio from a set of securities, S1, S2, and S3, each of which has an expected return E(r) and volatility or risk s. Below I see their risk-return characteristics.
Suppose the risk-free rate is 0.65%. Rank the three securities from lowest to highest according to the slope of their Capital Allocation Line, that is, their Sharpe ratio:
Securities Expected Return and Volatility Risk-free rate
E(r) s Sharpe ratios
S1 5.0% 3.0%
S2 4.0% 3.5%
S3 6.0% 3.6%

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