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The risk-free rate is 3%. You are allowed to borrow or lend at the risk-free rate, and you can invest in one of the following

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The risk-free rate is 3%. You are allowed to borrow or lend at the risk-free rate, and you can invest in one of the following mutual funds, but only one. Which one would be part of your portfolio (assume that you want to take at least some risk, so investing 100% of your money in the risk-free asset is not an option)? Fund \( \perp 4 \) Fund 3 Fund #1 Fund #2

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