Choose the best option. The tangent line from the risk$-$free return to the efficient frontier consisting of many risky assets has the following property:

Question $1$Answer

a$.$

It provides the best excess return for a unit of undiversifiable risk taken by an investor

b$.$

It becomes the new efficient frontier

c$.$

All rational investors choose a portfolio along this tangent line

d$.$

a$)$ and b$)$

e$.$

a$)$ and c$)$

f$.$

a$),$ b$)$ and c$)$