1. The efficient frontier of risky assets is (Single Choice) the portion of the minimum-variance portfolio that lies above the global minimum variance portfolio the portion of the minimum-variance portfolio that represents the highest standard deviations the portion of the minimum-variance portfolio that includes the portfolios with the lowest standard deviation the set of portfolios that have zero standard deviation 2. Consider risky securities A and B with - 1 correlation. E[rA) = 10% and STD(A) = 16%. E[rB] 8% and STD[rB) 12%. The risk-free portfolio that can be formed with the two securities will earn aln) rate of return. (Single Choice) 8.5% 9.0% 8.9% 9.9% 3. The index model has been estimated for stocks A and B with the following results: RA- 0.03 +0.7RM + CA. RB - 0.01 +0.9RM + eB.OM -0.35; 0(CA) = 0.20; 0(eB) = 0.10. The covariance between the returns on stocks A and B is (Single Choice) 0.0384 0.0406 0.1920 0.0772 0.4