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TAKE X= 3 URGENT !!!! 2. Consider the following risky portfolios (15) Expected return Standard deviation A 0.1 0.23 B 0.125 0.21 0.15 0.25 Portfolios

TAKE X= 3
URGENT !!!!
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2. Consider the following risky portfolios (15) Expected return Standard deviation A 0.1 0.23 B 0.125 0.21 0.15 0.25 Portfolios D E 0.16 0.17 0.29 0.29 F 0.18 0.32 G 0.18 0.35 H 0.2 0.45 a. Find the inefficient portfolios from the table above. [4] b. If you can borrow and lend at 6.5 + x percent, which of the above portfolios is best? [4) c. If an investor has a risk tolerance of a maximum of 25 percent, what is the most suitable portfolio assuming the investor cannot borrow or lend. [3] d. Which portfolio is the best for the investor if he can borrow or lend at the risk-free rate of 6.5 + x e. percent and a risk tolerance of 25 percent standard deviation? [4]

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