1. Mr B. Shrewd has recently inherited £350,000 and is looking at ways to invest the money.
He is aware of portfolio theory and the importance of the market portfolio. From his research he discovers the following:
expected returnstandard deviation
(a) If Mr Shrewd is prepared to accept risk equivalent to a standard deviation of 6% how should he invest his money? What will the expected return of his investment be?4.5%0%