CFAI Reading 13 question

CFA Level III Portfolio Management
#1

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!

#2

this is a question asked multiple times before - look at the 2 graphs 9 and 12 respectively - and then make the connection.

#3

Thanks cpk123. I was completely flummoxed when I came to these questions, and was just hoping they would make more sense on my second pass.

Thanks for asking the question bilmicee.