Investment Policy: Choosing an Allocation Allocation After-tax Return 10N 10% 5% D 20% Standard Deviation 15% SN 2% 10 Return - 2 Std Sharpe Ratio Deviations risk free - 2N) -20.0 053 0.ON 160 10% 150 0.0% 1 80 Max in one asset class 155 25% 15% 10% Using the decision-making steps on slides 45-6, which asset would you choose if you need at least 10% after-tax return and you do not want to lose money more than 2.5% of the time? Of course, you also want a diversified portfolio and to be compensated well for risk. Allocations are listed below. Please note that A through D may not be listed in order as questions and answers on tests often have mixed orders for different students @ Allocation A KO Allocation D Alloxatlon B Allocation