1.

A. What do all points that cluster in an umbrella shape in the R_{P p} plane represent. What is the above-mentioned cluster called?

B. What is the North-West direction on the above-mentioned plane desirable?

C. How does Markowitz eliminate the no-good portfolios from that cluster?

D. What does he end up with after hes done eliminating those no-good portfolios? What do we call the remaining ones?