Abu Bakar will receive inheritance amounting RM2 million and he plans to invest the entire amount in an exchange-traded fund. He is seeking advice from you as he knows that you already took the Investment Analysis subject in the university. He shows you some information related to the best four funds that he is interested to invest. As his good friend you feel responsible in helping him to choose the best fund. Fund A B C D Expected Rate of Return (%) Expected Standard Deviation (%) 16 27 11 22 16 25 14 22 Based on the above information, you are required to answer the following questions (no calculation is needed): a. Advice Abu Bakar with proper justification on the best funds if he is a risk taker. C. (5 Marks) b. Advice Abu Bakar with proper justification on the best funds if he is a risk adverse. (5 Marks) Explain how correlations between funds will affect the portfolio construction if Abu Bakar decided to invest in more than one funds. (5 Marks)