Question 13

The optimal complete portfolio is:

1. The minimum-variance point on the efficient frontier
2. The maximum-return point on the efficient frontier and the minimum-variance point on the efficient frontier
3. The tangency point of the steepest CAL and the efficient frontier
4. The line with the steepest slope that connects the risk-free rate to the efficient frontier

1. I and II only
2. II and III only
3. III and IV only
4. I and IV only
5. None of I, II, III, and IV.