Assume the risk-free rate is 4%. You are a financial advisor, and must choose one of the funds below to recommend to each of your clients. Whichever fund you recommend, your clients will then combine it with risk-free borrowing and lending depending on their desired level of risk.Appendix

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Expected Return Volatility Fund A 10% 10% Fund B 15% 22% 6% 2% Fund C Which fund would you recommend without knowing your client's risk preference?