a. General Electric (GE): 25%, Johnson & Johnson (JNJ): 25%, McDonalds (MCD): 25%, Merck (MRK): 25% b.

Question:

a. General Electric (GE): 25%, Johnson & Johnson (JNJ): 25%, McDonald’s (MCD): 25%, Merck (MRK): 25%

b. GE: 5%, JNJ: 30%, MCD: 40%, MRK: 25%

c. GE: 10%, JNJ: 50%, MCD: 30%, MRK: 10%

d. Which portfolio would a gambler choose? Explain.

e. Which portfolio would a risk-averse investor choose? Explain.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...