(10) According to the efficient market hypothesis (EMH), random price movements indicate A. irrational markets B. that prices cannot equal fundamental values C. that technical analysis to uncover trends that can be very profitable D. security prices reflect all available information (11) Given access to the same risk-free asset and the same investment opportunity set of risky assets, an investor's degree of risk aversion will determine his or her A. optimal risky portfolio B. risk-free rate C. optimal mix of the risk-free asset and risky asset D. capital allocation line (12) The optimal risky portfolio can be identified by finding: I. II. III. IV. The minimum-variance point on the efficient frontier The maximum-return point on the efficient frontier The tangency point of the capital market line and the efficient frontier The line with the steepest slope that connects the risk-free rate to the efficient frontier A. I or II B. II or III C. III or IV D. I or IV