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    One of MPs clients, Edward Alverson, 60 years of age, requests an analysis of four risky mutual funds (Fund W, Fund X, Fund Y, and Fund Z). After examining the four funds, MI finds that all four mutual funds are equally weighted portfolios, and that all of the funds, except Fund Z, are mean-variance efficient. MI also finds that the correlations between all pairs of the mutual funds are less than one.
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    Statement 1: All portfolios lying on the minimum variance frontier are desirable portfolios.
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    Explanation/Reference:
    Explanation:
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    The appropriate weighring can be determined by recalling the formula for the standard deviation of an investment that combines a risky asset (i.e., the MI-5000) and a risk-free a

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