Question 24 Bonus Questions: A risk averse investor is considering a portfolio with two risky mutual funds, a debt fund (D) and an equity fund (E). The risk and return characteristics for the two funds are as follows:00-12%, 0-20%. Pp.e= -0.3, Elro)-8%, Elre)-13%. It can be verified that the minimum variance portfolio has a weight of 68.6% in the debt fund and 31.4% in the equity fund, i.e., Wp *0.686, WE+0.314. Based on the information given, which of the following portfolio is clearly not acceptable for a risk averse investor? Portfolio 0.10 WD WE 0.90 1 2 3 0.75 0.60 0.25 0.40 0.55 0.80 4 0.45 0.20 5 Portfolio 3 Portfolio 2 Portfolio 1 Portfolio Portfolio 4