not sure if it’s been covered here. Question ask for a portfolio that meet the return requirement (7.5%) and less than the standard deviation of 15%. The answer keys chose to invest in Portfolio 5 and a risk free portfolio equally. However, the expected return for this combined portfolio is only 6% (not enough for the required return of 7.5 percent. Also, should admin fees and mgmt fees be included in return calculation. In this case, should be required return be 7.5 + 0.6= 8.1%? Thanks.
nevermind solved the problem