Suppose that only three funds are traded in the market (well-diversified funds):

Fund A Fund B Fund C

Expected Return 0.10

0.15

0.20

Standard Deviation 0.15

0.20

0.25

=0; =0.5; =0.5

1. Assuming you would like to invest your money equally in two securities (50%- 50%), which two securities should you choose?
2. Would you recommend invest equally-proportion in all three securities? Support your answer with explanation.