Over the past year you earned a nominal rate of interest of 6% on your money. The inflation rate was 2% over the same period. The exact actual growth rate of your purchasing power was 8.00%. 6.10%. 4.20%. 3.92%. 1.92%.

Which of the statement is false?

		The capital allocation line can be described as the investment opportunity set formed with a risky asset and a risk-free asset.
		The CAL has an intercept equal to the risk-free rate. It is a straight line through the point representing the risk-free asset and the risky portfolio, in expected-return/standard deviation space.
		The CAL is also called the efficient frontier of risky assets in the absence of a risk-free asset.
		The slope of the CAL equals the increase in the expected return of the complete portfolio per unit of additional standard deviation.
		The slope of the CAL is also called the reward-to-volatility ratio.