ered 0.50 on age Time left 0:46:27 Which of the following statements are correct: I. The Capital Market Line links up with an individual risky asset II. The Capital Market Line shows the expected return and risk for the portfolio with the highest Sharpe ratio III. Based on the mean-variance criteria, all investors want to target points on the efficient frontier IV. Based on CAPM, investors should expect to be compensated for the diversifiable risk O a. I and III O b. II, III, and IV O c. I, II, III, and IV O d. I and IV Oe. II and III Next page

Which of the following statements are correct: 1. The Capital Market Line links up with an individual risky asset II. The Capital Market Line shows the expected return and risk for the portfolio with the highest Sharpe ratio III. Based on the mean-variance criteria, all investors want to target points on the efficient frontier IV. Based on CAPM, invetors should expect to be compensated for the diversifiable risk a. I and III b. III III, and IV c. I, II, III, and IV d. I and IV e. II and