P5.19 Portfolios A through J, which are listed in the following table along with their returns (rp) and risk (measured by the standard deviation, sp), represent all currently available portfolios in the feasible or attainable set. Portfolio Return (rp) Risk (sp) ABCDEFGH 9% 8% 3 3 14 10 12 14 7 11 11 6 10 12 16 16 5 7 J 8

a. Plot the feasible or attainable set represented by these data on a set of portfolio risk, sp (x-axis)-portfolio return, rp (y-axis) axes.

b. Draw the efficient frontier on the graph in part

a. c. Which portfolios lie on the efficient frontier? Why do these portfolios dominate all others in the feasible or attainable set?

d. How would an investor's utility function or risk-indifference curves be used with the efficient frontier to find the optimal portfolio?