You buy some beads and string from a student on campus to make a bracelet for yourself. you valued the materials at $11 but were charged only $8. unknown to you, the seller would have sold them for $5. after you make the bracelet, you like it more than the original materials used to make it. you value the bracelet at $15. one day, a random stranger (who values your bracelet at $26) compliments the bracelet and offers you $20 for it, and you decide to sell it to the stranger.

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d