Graphs to know$/$interpret:

Investment opportunity set: correlation and gains from diversification

Efficient frontier: apply the mean$-$variance criterion to derive the efficient frontier

Optimal risky portfolio: find the tangent portfolio by drawing CALs

between risk$-$free asset and risky assets on the efficient.

Calculate Sharpe ratio: ratio of excess returns $($risk premium$)$ to standard deviation $($risk$)$

Memorize the formula for Sharpe ratio!

Draw the capital allocation line $($CAL$)$

Interpret the CAL and its relationship with the Sharpe ratio