The following graph shows the set of portfolio opportunities for a multiasset case. The point of corresponds to a risk-free asset, the red curve BME is the efficient frontier, the shaded area under the efficient frontier represents the feasible set of portfolios of risky assets, and the yellow curves I, and 12 are indifference curves for a particular investor. EXPECTED RATE OF RETURN (Percent) 10 RS 0 10 RISK (Portfolio's standard deviation) Point B, where indifference curve Iz is tangent to the efficient set, represents: The best attainable combination of risk and return A portfolio that combines the risk-free asset with a portfolio of risky assets A portfolio that dominates portfolio A A portfolio that provides the smallest degree of risk for a given expected return Which of the following is a correct definition of the line PREMZ on the graph? The market equilibrium The Capital Market Line The efficient portfolio The market risk premium Suppose that the return on the risk-free asset is pas = 15%, the return on the market portfolio is M = 20%, the market risk is OM = 10%, and the portfolio risk is Op = 15%. Then the expected rate of return on an efficient portfolio equals 20.00% 22.50% Generally, a less risky portfolio would have rate of return. 30.00% 27.50% a lower the same a higher