The agent made an intensive use of vehicle. She has just bought two vehicles for 6000 each. She has two unqualified Accounting staff in her office. One of them suggested 20% straight line depreciation and the other suggested a 20% by the reducing balance method. Both agree on a five years working life for the two vehicle. The two anticipated know residual value for either of the vehicle after five years

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