The investment committee of LFC Bank recently used reports from its team of equity analysts to develop a list of five plausible efficient portfolios as follows: Portfolio Number 1 2 3 4 5 Expected Rate of Return 8% 10% 15% 20% 25% Standard Deviation 5% 6% 8% 13% 18% a) Using the information in the table and assuming a risk-free rate of interest of 3%, which portfolio could yield the highest return per unit of risk when combined with the risk-free asset? (5 marks) b) Using the portfolio ascertained in part a), if a standard deviation of 12% is acceptable to the investment committee, what combination of the portfolio and risk-free asset could achieve this level of risk? What would the expected return be for the combination? (4 marks) c) What is the expected return on a combined portfolio made up of all the above 5 portfolios with an equal weighting given to each portfolio? Would the standard deviation of this combined portfolio be higher or lower than that of the portfolio identified in part a) or is it not possible to say