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Portfolio E Standard Dev Corr with A Corr with B Corr with C Corr with D A 11,55% 9,65 1 0,75 0,6 0,45 B 14,65%
Portfolio | E | Standard Dev | Corr with A | Corr with B | Corr with C | Corr with D |
A | 11,55% | 9,65 | 1 | 0,75 | 0,6 | 0,45 |
B | 14,65% | 19,55 | 0,75 | 1 | 0,85 | 0,55 |
C | 15,25% | 22,64 | 0,6 | 0,85 | 1 | -0,25 |
D | 11,51% | 16,55% | 0,45 | 0,55 | -0,25 | 1 |
Risk free rate r(f) | 7,50% |
Which of the four portfolio(s) in Table 1 is(are) on the best-possible CAL? Also include an Illustration (i.e. draw separate CALs for each portfolio) to help explain your answer
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