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[A] [E] Question 24 Select the best descriptions for each of the letters that appear in square brackets on the figure below. As discussed in

[A] [E] Question 24 Select the best descriptions for each of the letters that appear in square brackets on the figure below. As discussed in class this is a "picture of the CAPM" and is not a regression line. Canvas doesn't allow the lists of possible matches to include subscripts. So in the list of possible answers below assume E[rm] = E[rm], and rf = rf, and sigmam = m. You should not have to use the same answer twice. Label for vertical axis = [E] [F] [A] [G] [Choose ] 1 Label for horizontal axis = [B] [Choose ] [D]- 7 pts 1.5 Slope for this line=[C]
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Select the best descriptions for each of the letters that appear in square brackets on the figure below. As discussed in class this is a "picture of the CAPM" and is not a regression line. Canvas doesn't allow the lists of possible matches to include subscripts. So in the list of possible answers below assume E[rm]=E[rm], and rf =rf, and sigmam =m. You should not have to use the same answer twice. Labe verti axis : Label for horizontal axis =[B] [ Choose] negative alpha expected return on portfolio with a sigma equal to 1.5 rf Sharpe ratio Tangency portfolio positive alpha expected return on portfolio with a beta equal to 1.5 residual E[rm] E[rm]-rf beta standard deviation of returns sigmam expected returns [Choose]

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