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You have the following diversified portfolio options (see their expected retum and standard deviations), eliminate which portfolios have uninteresting risk- return tradeoff due to
You have the following diversified portfolio options (see their expected retum and standard deviations), eliminate which portfolios have uninteresting risk- return tradeoff due to the availability of some of the other listed portfolios. (Eliminate all but four) Indicate which four are not eliminated and as such should be considered for investment. standard deviation Expected return Portfolio 1 12% 35% Portfolio 2 8% 25% Portfolio 3 5% 0% Portfolio 4 13% 40% Portfolio 5 12% 33% Portfolio 6 9% 23% Portfolio 7 13% 24% Portfolio 8. 9% 22% Portfolio 9 4% 8% Portfolio 10 19% 45% O Portfolios: 3, 7, 8 and 10 O Portfolios 3, 5, 8 and 9 O Portfolios 4, 7, 8 and 10 O Portfolios: 2, 6, 7 and 11
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