Question 11 11) Which one/s of the following portfolios is/are inefficient? a. CDG b. DEH c. BFG d. ADH 12) (Continuation) Suppose that you can borrow and lend at an interest rate of 5 percent. Which one of the portfolios is the best? a. H b. C c. G d. F 13) (Continuation) At a maximum SD=31%, what is the maximum expected return that you can achieve if you cannot borrow and lend? a. H b. A c. B d. D 14) (Continuation) What is your optimal strategy if you can borrow or lend at 5 percent and are prepared to tolerate a SD of 50% ? a. Invest 163% in portfolio H, and borrow 63% at riskless asset b. Invest 143% in portfolio F, and borrow 43% at risk free rate c. Invest 34% in portfolio E, and 64% in riskless asset d. Invest 92% in portfolio H, and 8% in riskless asset 15) (Continuation) What is the maximum expected return that you can achieve? a. 29% b. 14% c. 54% d. 23%