2. Suppose that you are managing money for a risk averse dient and are considering suggesting Portfolio C, a portfolio of Acer A and Asset B. After numerous rounds of simulation, you have come to the conclusion that, by investing equally in the two assets, Portfolio Cwill achieve the best possible Sharpe ratio. Assume a risk free rate of 2 percent. Portfolio expected excess return 0.16 C A 012 0.1 OO 0.08 0.00 004 0.02 01 0.15 0.25 0.3 0.35 Portfolio standard deviation 4. Explain why a set of inefficient" portfolio selections (i.e., dots "=" within the circle) should be excluded when you are considering potential portfolio allocation/selection. (5 pts) b. Is investing in Portfolio C the best solution among all other possible combinations of portfolio choices? Discuss. (5 pts) 2. Suppose that you are managing money for a risk averse dient and are considering suggesting Portfolio C, a portfolio of Acer A and Asset B. After numerous rounds of simulation, you have come to the conclusion that, by investing equally in the two assets, Portfolio Cwill achieve the best possible Sharpe ratio. Assume a risk free rate of 2 percent. Portfolio expected excess return 0.16 C A 012 0.1 OO 0.08 0.00 004 0.02 01 0.15 0.25 0.3 0.35 Portfolio standard deviation 4. Explain why a set of inefficient" portfolio selections (i.e., dots "=" within the circle) should be excluded when you are considering potential portfolio allocation/selection. (5 pts) b. Is investing in Portfolio C the best solution among all other possible combinations of portfolio choices? Discuss. (5 pts)