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27 28 29 please C the choice of inputs to be used to determine the efficient frontier is objective and the choice of the best

27 28 29 please image text in transcribed
C the choice of inputs to be used to determine the efficient frontier is objective and the choice of the best CAL is subjective. D. the determination of the best CAL is objective and the choice of the inputs to be used to determine the efficient frontier is subjective. E. investors are separate beings and will therefore have different preferences regarding the risk-return tradeoff. 27. Consider two perfectly negatively correlated risky securities A and B. A has an expected rate of return of 12% and a standard deviation of 17%. B has an expected rate of return of 9% and a standard deviation of 14%. The risk-free portfolio that can be formed with the two securities will earn rate of return. A. 9.5% B. 10.4% C. 10.9% D. 9.9% A risky portfolio has an expected return of 10% and a standard deviation of 20%. The yield on the 30-day T-Bill is 396. 28. For an investor with a coefficient of risk aversion A-3, the optimal complete portfolio invests what percentage of total wealth in the risky portfolio? a. 42% b. 58% c.75% d. 126% 29. If 45% of wealth is invested in the risky portfolio and 55% in the T-Bill, what is the standard deviation of the complete portfolio? a. 20% b. 14% c.996 d.6%

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