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RETURN(%) 8 10 11 13 14 is 16 12 RISK (%) Figure 1: The efficient frontier. 2.1 Which letters correspond to efficient portfolios? Start writing

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RETURN(%) 8 10 11 13 14 is 16 12 RISK (%) Figure 1: The efficient frontier. 2.1 Which letters correspond to efficient portfolios? Start writing here: 2.2 Provide one example of an inefficient portfolio. Start writing here: 2.3 Which portfolio provides the greatest return for the lowest risk? Start writing here

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