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4.15. Assume a risk-free rate of 1.5%. Answer the questions below using the information in the following table Portfolio A |B |C |D |E Expected
4.15. Assume a risk-free rate of 1.5%. Answer the questions below using the information in the following table Portfolio A |B |C |D |E Expected Return | 3.2%)| 8.1%| 9.8% | 5.1%| 10.7%)| 4.8% Standard Deviation 2.7% 9.9% 13.7% 6.2%| 17% | 6.1% a) Among the portfolios in the table, which one is closest to the market portfo- lio? Justify your answer. b) Plot the capital market line (CML) based on your answer in part (a). c For portfolio C, what is the portfolio risk premium per unit of portfolio risk? d) Suppose we are willing to make an investment only with d-6.2%. Is a 4.15. Assume a risk-free rate of 1.5%. Answer the questions below using the information in the following table Portfolio A |B |C |D |E Expected Return | 3.2%)| 8.1%| 9.8% | 5.1%| 10.7%)| 4.8% Standard Deviation 2.7% 9.9% 13.7% 6.2%| 17% | 6.1% a) Among the portfolios in the table, which one is closest to the market portfo- lio? Justify your answer. b) Plot the capital market line (CML) based on your answer in part (a). c For portfolio C, what is the portfolio risk premium per unit of portfolio risk? d) Suppose we are willing to make an investment only with d-6.2%. Is a
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