The following table shows the standard deviations and expected returns for portfolios with various percentages of stocks, bonds and real estate. Which portfolios, if any, are inefficient according to the modern portfolio theory discussed in class? ___________________

				Portfolio	Portfolio
Portfolio	Portion In	Portion In	Portion In	Expected	Standard
Number	Stocks	Bonds	Real Estate	Return	Deviation
1	0%	93%	7%	7.50%	5.11%
2	8%	71%	21%	8.50%	5.05%
3	20%	50%	30%	9.50%	6.18%
4	33%	29%	38%	10.50%	7.95%
5	45%	8%	47%	11.50%	10.03%
6	88%	0%	12%	12.50%	14.59%

2. Calculate the coefficient of variation for each of the above six portfolios and list them below: 1. _______ 2. _______ 3. _______ 4. _______ 5. _______ 6. _______

3. As an investor in the current economic environment, briefly describe which of the above portfolios seems most appealing?