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Questions 1-6 refer to the following graph of risk vs. return for a basket of possible portfolios, where each lettered point represents a different portfolio.

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Questions 1-6 refer to the following graph of risk vs. return for a basket of possible portfolios, where each lettered point represents a different portfolio. The shaded area represents all possible stock portfolios Expected return 6.0% 2.35% 0% Risk 1. Which portfolio is infeasible? B/E C. G D. all of the above are feasible 2. Which portfolio has the highest return? D. D 3. which portfolio represents 100% allocation into US Treasuries? A. B B. C C. D D. E 4. I,the risk free rate is 2.35%, which is the optimal stock portfolio? B. B C. D D. E

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