Question 2 for reading 13 in the CFAI (page 423) asks what the portfolio should be for two different types of individuals. One with low employment risk and low correlation to the stock market, and one with high employment risk and high correlation to the stock market.
What does person to get portfolio “C” composed of 65% of risky assets and 35% of risk free? What am I missing that they deem “C” as the correct choice instead of B or D or E? (no math is given in the answer)
Thanks!