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Combining the risk-free asset with one of the securities

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Reference no: EM132455508

Consider a treasury bill with a rate of return of 5% and the following risky securities:

                                                Expected Return         Variance

                                    A                     0.15                 0.0400

                                    B                     0.10                 0.0225

                                    C                     0.12                 0.1000

                                    D                     0.20                 0.0625

The investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. The security the investor would choose as part of his complete portfolio would be

Reference no: EM132455508

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