3. What portfolio in the following diagram has the least risk? Indicate Case I, II or III and approximate percentage of stock allocation to A and B. Why is this the least risky portfolio? FIGURE 7-7 Illustrations of Portfolio Returns, Risk, and the Attainable Set of Portfolios a. Returns b. Rask c. Astainable Set of Risk Return Combinations Expected Return, 09 Percent Percent 0-10 Caset Pe -.1.0 8 5 04 100%A Portfolio 100%8 Allocation Porcent 100%A Portfolio 100%B0 Allocation Percent F.C%) 10 Risk, 0, (96) 0-10 Case 68 P-O 5 04 0 0 4 10 100%A Portfolio 100% Allocation Porcent 100%A Portfolio 100% Allocation Porcent Risk. 0,10 1.) y 10 Case : B P-10 -5 04 + 100%A Portfolio 100% Allocation 100%A Portfolio 100%80 Allocation 10 Aisk, 0,1%) a. Returns b. Risk Altainable Set of Risk Retum Combinations Expected Ratum, Percent Porcent G = 10] Caset Pe 1.0 B A-5 CA=4 A 0 100%A Portfolio 100% Allocation Percent 100%A Portiollo 100XB Allocation Percent 10 Risk. 0,1) = 10 Case it: Po CC B Pie - 7,5 0,4 0 10 100% Portfolio 100% Allocation Percent 100%A Portfolio 100%B Allocation Percent Risk, o,) Og = 10 Case til: B PS - 1.0 1-5 A 04 0 100%A Portfolo 10648 Allocation 100Portfolio 100% Allocation 10 Risk ,(%)