The drop downs at the bottom for case III is (0.25/1.00/ 0.32/0.48). The second drop down after "better off" is (selling asset B short/ rolling off both assets from the portfolio/ holding asset A in the portfolio)

1. The two-asset case Aa Aa The expected return for asset A is 9.75% with a standard deviation of 5.00%, and the expected return for asset B is 8.75% with a standard deviation of 10.00%. Based on your knowledge of efficient portfolios, fill in the blanks in the following table with the appropriate answers Proportion of Portfolio in Proportion of Portfolio in Security B Expected Portfolio Return Standard Deviation 0p (%) Security A Case II (PAB-0.4) (PAB-0.4) (PAB0.7) 5.0 Case I Case III WA 1.00 0.75 0.50 0.25 0.00 WB 0.00 0.25 0.50 0.75 1.00 rp 9.75% 9.50% 5.0 5.8 7.0 3.6 4.6 7.1 10.0 6.4 8.1 10.0 9.00% 8.75% 10.0 The minimum risk portfolio allocation to asset A within the portfolio for case III is better off Therefore, you are