Answer 12

e. 7.50% /d.): 1.00% The value of the investment grows 4% and you earn a 11. Rational risk-averse investors will always prefer portfolios a. Located on the efficient frontier to those located on the capital market line b. Located on the capital market line to those located on the efficient frontier At or near the minimum variance point on the efficient frontier d. That are risk-free to all other asset choices 12. Based on the outcomes in the table below choose which of the statements is/are correct Scenario Recession Normal Boom Security A Security B Security C Return> Eu Return Return - E Return- Eu R l Return-EG Return > E11 eturn