where P = 0.1.

4.18. Assume the risk-free rate is 1.5% and consider the information in the table below: Portfolio Expected Return Standard Deviation A 3.2% 2.7% B 8.1% 9.9% 9.8% 13.7% D 5.1% 6.2% E 10.7% 17% F 4.8% 6.1% a) Which of these six portfolios offers investors the best combination of risk and return? Justify your answer from a capital market perspective. b) Use the formula Hp = worf +(1 wo)m to determine your investment asset allocation. c) If you plan to invest $100,000, what is your investment strategy based on the information given in this exercise? 4.18. Assume the risk-free rate is 1.5% and consider the information in the table below: Portfolio Expected Return Standard Deviation A 3.2% 2.7% B 8.1% 9.9% 9.8% 13.7% D 5.1% 6.2% E 10.7% 17% F 4.8% 6.1% a) Which of these six portfolios offers investors the best combination of risk and return? Justify your answer from a capital market perspective. b) Use the formula Hp = worf +(1 wo)m to determine your investment asset allocation. c) If you plan to invest $100,000, what is your investment strategy based on the information given in this exercise