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To answer items 1 to 3, consider the following risky portfolios. The risk-free rate is 3%. Portfolio Expected Return A 15% B Standard Deviation 25%

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To answer items 1 to 3, consider the following risky portfolios. The risk-free rate is 3%. Portfolio Expected Return A 15% B Standard Deviation 25% 17% 15% 10% 11% 12% 10% 8% 6% D E 3. Which one of the 5 portfolios would be the optimal risky portfolio? A. Portfolio A B. Portfolio B C. Portfolio C D. Portfolio D E. Portfolio E

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