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The following graph shows the set of portfolio opportunities for a multiasset case. The point rrr corresponds to a risk-free asset, the red curve BME

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The following graph shows the set of portfolio opportunities for a multiasset case. The point rrr 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 I 2 are indifference curves for a particular investor. EXPECTED RATE OF RETURN Percent) RISK IPortfolio's standard deviation The points on the line PREMZ represent: Portfolios that are dominated by any portfolio at any point on the efficient frontier BME Portfolios with the smallest degree of risk for a given expected return The best attainable combinations of risk and return Portfolios that are dominated by portfolio A Which of the following is the correct expression for the Capital Market Line? O M = PRF + [Cfp - PRF) / Om] x op o ip = rrr + [CM - PRF) / om] O p = rrf + [M - PRF) / OM] x op O p = [(m - PRF) / Om] x op 15%, and the Suppose that the return on the risk.free asset is FRF 10%, the return on the market portfolio istu -15%, the market risk is a portfolio risk iso -10%. Then the expected rate of return on an efficient portfolio equals Generally, a riskier portfolio would have rate of return. 14.95% Oprrf + [CM - PRF) /om] O , PRF + C - TRF)/OM] X Op - ( FRF) / OM] Xp 13.30% 20.00% 18.30% - 15%, the market risk is OM -15%, and the Suppose that the return on the risk-free asset is TRF = 10%, the return on the market port portfolio risk is g, -10%. Then the expected rate of return on an efficient portfolio equals Generally, a riskier portfolio would have rate of return - ll - PRF) / Om] a lower Suppose that the return on the risk-free the same = 10%, the return on the market portfolio is PM -15%, the market risk is ay = 15%, and the portfolio risk is op = 10%. Then the exp return on an efficient portfolio equals a higher Generally, a riskier portfolio would have rate of return

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