Assume that you are Rahul, how would you advise your uncle in suggesting a portfolio of mutual fund for investment by:

(a) Forming a two-asset portfolio and examine how risk is reduced.

(b) Forming an efficient multi-asset portfolio.

(c) Analysing the effect of adding a risk-free asset to a portfolio containing or with risky assets.

(d) Suggesting an optimal portfolio that gives the highest return for a specified risk level.