tandard Deviation: 10.56% Average Risk Free Rate: 2.18% Using these figures: a) Select the best one among these using appropriate tool (formula) and provide your rationale for your selection. Show necessary calculations. b. Should you stick to your original portfolio or switch to one of the following? Explain Avaliable Portfolios to invest: Avg Return Standard Deviation Portfolio A 7.5 12.4 Portfolio B 7.2 11.75 Portfolio C 6.7 10.55 Portfolio D 8.5 14.3

tandard Deviation: 10.56% Average Risk Free Rate: 2.18% Using these figures: a) Select the best one among these using appropriate tool (formula) and provide your rationale for your selection. Show necessary calculations. b. Should you stick to your original portfolio or switch to one of the following? Explain Avaliable Portfolios to invest: Avg Return Standard Deviation Portfolio A 7.5 12.4 Portfolio B 7.2 11.75 Portfolio C 6.7 10.55 Portfolio D 8.5 14.3

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 13QTD

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Question

Risky Portfolio Standard Deviation: 10.56%

Average Risk Free Rate: 2.18%

Using these figures:

a) Select the best one among these using appropriate tool (formula) and provide your rationale for your selection. Show necessary calculations.
b. Should you stick to your original portfolio or switch to one of the following? Explain

Avaliable Portfolios to invest:

	Avg Return	Standard Deviation
Portfolio A	7.5	12.4
Portfolio B	7.2	11.75
Portfolio C	6.7	10.55
Portfolio D	8.5	14.3

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