You can always improve the Sharpe ratio, or the return/risk ratio of your portfolio, by adding asset classes to your portfolio with a higher Sharpe ratio than the existing portfolio. True False 

Given the following information and considering utility and short-fall ratios, which asset do you prefer? Asset E(return) Standard Deviation 

A 10% 12% B 20% 10% C 5% 1% D 12% 10% Risk aversion 6 Required return 8% A B C D