INV4 5c Your brother-in-law, Bil, fancies himself quite an investor, and he knows your sister, Hermana, also has “a bit of an interest in the markets.” So, he wants you to settle a dispute between...

INV4 5c

Your brother-in-law, Bil, fancies himself quite an investor, and he knows your sister, Hermana, also has “a bit of an interest in the markets.” So, he wants you to settle a dispute between them as to who is the better “market player.”

Your research into their online brokerage trades has turned up the following performance information:

The risk-free rate is 1% and the standard deviation for the Benchmark portfolio is 3.50%, Bil’s portfolio is 5.00%, and Hermana’s portfolio is 3.00%.

Compare Bil and Hermana’s performance relative to the benchmark in terms of portfolio returns.

c. Who is superior in asset allocation?