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Portfolios A through J, which are listed in the following table along with their returns (ip) and risk (measured by the standard deviation, $p). represent

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Portfolios A through J, which are listed in the following table along with their returns (ip) and risk (measured by the standard deviation, $p). represent all currently available portfolios in the feasible or attainable set. Portfolio Return, (%) Risk, sp (%) A 9 8 B 3 3 14 10 D 12 14 E 7 11 F 11 6 G 10 12 H 16 16 I 5 7 J 8 4 Required: (1) Plot the feasible, or attainable set represented by these data on a graph showing portfolio risk. &r (x-axis), and portfolio returns, in (y-axis). (5 marks) Draw the efficient frontier on the graph in part (1). (5 marks) (iii) Which portfolios lie on the efficient frontier ? Why do these portfolios dominate all others in the feasible set ? (6 marks) (iv) How would an investor's utility function or risk-indifference curves be used with the efficient frontier to find the optimal portfolio? (4 marks)

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