Question: show all work. No excel. Please write out work. and pls provide explanation . 3. (20 points) A portfolio manager has the following risk-return information

show all work. No excel. Please write out work. and pls provide explanation .show all work. No excel. Please write out work. and pls provide

3. (20 points) A portfolio manager has the following risk-return information of three securities: Portfolio Stock X Stock Y Risk-free Forecasted Return 20% 15% 5% Standard Deviation 30% 25% 0% If the manager is only able to invest in one and only one stock between X and Y, which stock should she/he choose? Explain your answers

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