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Your client Bo is interested in several risky funds: Fund A Fund B Fund C Fund D Fund E Annual 14% 9% 12% 13% 19%
Your client Bo is interested in several risky funds: Fund A Fund B Fund C Fund D Fund E Annual 14% 9% 12% 13% 19% Expected Return Standard Deviation on Annual Realized Return 13% 11% 15% 10% 25% He would like to choose one of the above 5 funds to combine with the T-bill that yields a riskfree return of 6% per year. Which fund is the optimal portfolio for this purpose according to the Markowitz Portfolio Theory (modern portfolio theory)? A. Fund A B. Fund B C. Fund C D. Fund D E. Fund E
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