Section C - Answer TWO (2) of the three questions in this section. You should show your full calculations (where applicable). Q14. You are given following risky portfolios. The risk-free rate (rf) is at 10%. A B C D E Expected return .11 .15 .15 .16 .16 Standard .22 .24 .26 .30 .40 deviation Required: a) Please identify the inefficient portfolios and provide explanations. b) Please compute the Sharpe ratio for each portfolio. [5 marks] [5 marks] c) Suppose that you are prepared to tolerate a standard deviation of 20%. What is the maximum expected return that you can achieve if you can borrow and lend at the risk-free rate? [15 marks] Total 25 marksl