The tangency portfolio between the risk-free asset and the efficient frontier has the Multiple Choice highest alpha highest Sharpe ratio highest beta highest standard deviation highest expected return According to the expectations hypothesis of the yield curve Multiple Choice the yield curve will never be downward sloping. markets are segmented and investors stay in their own segment. the yield curve will often be upward sloping. long-term spot rates are geometric averages of the current and expected future short-term rates. the yield curve can be used to predict recessions