15. Below are the portfolio allocation weights recommended by three fund managers to satisfy different levels of portfolio risk requests. Risk level Manager A Manager B Manager C Riskfree Value Growth Riskfree Value Growth Riskfree Value Growth Stocks Stocks Stocks Stocks Stocks Stocks 30% 60% 50% Low risk 40% 40% 20% 35% 35% 20% 20% High risk 0% 50% 50% 20% 40% 40% 0% 50% Manager A, B and C have access to T-bill, the value stocks and the growth stocks. But, they cannot short sell the riskfree asset (i.e. they cannot borrow). It's known that the value stock has lower risk premium and lower variance (risk) than the growth stocks. 6 of 13 Judged separately, which manager's allocation for different levels of risk is NOT consistent with optimal portfolio selection, i.e. Markowitz Portfolio Theory. ("Consistent means you cannot rule out the possibility that both of the manager's allocations are optimal)? A Manager A B. Manager B 6 of 13 C. Manager D. All the managers are consistent F. None of the managers are consistent 15. Below are the portfolio allocation weights recommended by three fund managers to satisfy different levels of portfolio risk requests. Risk level Manager A Manager B Manager C Riskfree Value Growth Riskfree Value Growth Riskfree Value Growth Stocks Stocks Stocks Stocks Stocks Stocks 30% 60% 50% Low risk 40% 40% 20% 35% 35% 20% 20% High risk 0% 50% 50% 20% 40% 40% 0% 50% Manager A, B and C have access to T-bill, the value stocks and the growth stocks. But, they cannot short sell the riskfree asset (i.e. they cannot borrow). It's known that the value stock has lower risk premium and lower variance (risk) than the growth stocks. 6 of 13 Judged separately, which manager's allocation for different levels of risk is NOT consistent with optimal portfolio selection, i.e. Markowitz Portfolio Theory. ("Consistent means you cannot rule out the possibility that both of the manager's allocations are optimal)? A Manager A B. Manager B 6 of 13 C. Manager D. All the managers are consistent F. None of the managers are consistent