Meezan Investment Fund Faisal Investment Fund PSX Fund Expected Return 16% 14 % 12% Standard Deviation 12 % 10% 8 % Your friend who works at SAROH Investment Advisory has done you a favor and told you that the correlation between returns of Meezan Investment Fund and PSX Fund is 0.7. You also know that Pakistan T Bills are offering 6 % return. Which of the following portfolios would you prefer to hold in combination with Pakistan T Bills and why? Option 1 - Meezan Investment Fund Option 2 - Faisal Investment Fund Option 3 - PSX Fund Option 4 - A portfolio of sixty percent of Meezan Fund and forty percent of PSX Fund