Question: a. General Electric (GE): 25%, Johnson & Johnson (JNJ): 25%, McDonalds (MCD): 25%, Merck (MRK): 25% b. GE: 5%, JNJ: 30%, MCD: 40%, MRK: 25%

a. General Electric (GE): 25%, Johnson & Johnson (JNJ): 25%, McDonald’s (MCD): 25%, Merck (MRK): 25%

b. GE: 5%, JNJ: 30%, MCD: 40%, MRK: 25%

c. GE: 10%, JNJ: 50%, MCD: 30%, MRK: 10%

d. Which portfolio would a gambler choose? Explain.

e. Which portfolio would a risk-averse investor choose? Explain.

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