Jane Cullis is considering three potential asset allocations. She wishes to earn a nominal return of no less than 4%, and she has a high-risk tolerance with a lambda of 2. The following asset allocations are available: Expected Return Allocation 1 6% Allocation 2 8% Allocation 3 10% Variance 0.02 0.03 0.04 Based on the information provided, which of the following allocations should Cullis choose? A. Allocation 1. B. Allocation 2. C. Allocation 3

23. Jane Cullis is considering three potential asset allocations. She wishes to earn a nominal return of no less than 4%, and she has a high-risk tolerance with a lambda of 2 . The following asset allocations are available: Based on the information provided, which of the following allocations should Cullis choose? A. Allocation 1. B. Allocation 2. C. Allocation 3