Figure 6.7 shows one possible choice for the preferred complete portfolio, C. The investor places 43% of wealth in portfolio O and 57% in Treasury bills. The rate of return and volatility of the portfolio are

1)=E(r_C )=

2)=_C=

Elrp) CALO 7.16% Portfolio O 5.29% Portfolio C - 3% - - - OP 5.58% 10.15% Elrp) CALO 7.16% Portfolio O 5.29% Portfolio C - 3% - - - OP 5.58% 10.15%