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B Int has a Sharpe ration of 0.5 and expected return of 27%. B Dom has a Sharpe ratio of 0.7 and expected return of

B Int has a Sharpe ration of 0.5 and expected return of 27%. B Dom has a Sharpe ratio of 0.7 and expected return of 17%. IF you are looking to construct a portfolio with one risk-free and one of funds and you are a risk averse investor which fund would your choose.

a. B int

b. B dom

c. None of the funds

d. None of the above

e. Allocate 50% to each fund

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