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4.18. Assume the risk-free rate is 1.5% and consider the information in the table beloW. Portfolio Expected Return Standard Deviation 32% 8.1% 9.8% 5.1% 10.7%

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4.18. Assume the risk-free rate is 1.5% and consider the information in the table beloW. Portfolio Expected Return Standard Deviation 32% 8.1% 9.8% 5.1% 10.7% 4.8% 27% 99% 13.7% 62% 7% 6.1% a) Which of these six portfolios offers investors the best combination of risk and return? Justify your answer from a capital market perspective 4.4 Exercises 203 b) Use the formula to determine your investment asset allocation c) If you plan to invest $100,000, what is your investment strategy based on the information given in this exercise

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