2. The best complete portfolio for a particular investor is designated by:

A)The point of highest reward to variability ratio in the opportunity set.

B)The point of tangency with the opportunity set and the capital allocation line.

C)The point of tangency with iso-utility curve and the capital allocation line.

D)The point of the highest reward to variability ratio in the indifference curve.

3. You invest $100 in a risky asset with an expected rate of return of 15% and a standard deviation of 15% and a T-bill with a rate of return of 5% and E (U)= E(r) - 0.5A². Suppose your risk aversion factor is 5. What weight would you assign to the risk-free asset?

A)0.8889.

B)0.1111.

C)0.2457.

D)0.2111.