Q2) Consider a Treasury bill with a rate of return of 5% and the following...
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Q2) Consider a Treasury bill with a rate of return of 5% and the following risky securities: Security A: ED-17standard deviation 0400 Security B: B1)= 12; standard deviation - 0225 Security C: B.) = 15; standard deviation - 1000 Security D: En-20, standard deviation =.0625 The investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. Based or sharp ratio (reward-volatility ratio), Specify the security the investor should choose as part of his/her complete portfolio to achieve thi best CAL, show your calculations and justifications. ( 3 Marks) Sharp Portalo Risk - Premium sd SA 42.57 400 SB. -12
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