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7. With respect to Modern Portfolio Theory, if an investor can invest in the risk-free asset, her or his Optimal Risky Portfolio will be the

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7. With respect to Modern Portfolio Theory, if an investor can invest in the risk-free asset, her or his Optimal Risky Portfolio will be the one with the highest: A. Expected return B. Standard deviation C. Sharpe ratio Use the following chart to answer questions 8,9 and 10: Mean Return % Optimal CAL Stocks 8. Which one or ones of the labeled risk-return combinations must not be achievable? A. Only F B. Both A and I C. Both A and C D. Only E E. Only A F. Only G 9. Which one of the labeled risk-return combinations represents the A. Portfolio G B. Portfolio E C. Portfolio B D. Portfolio F 10. Which one or ones of the labeled risk-return combinations represent acceptable complete portfolios A. Only B B. F, D, B and G C. B and E D. Hand

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