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The following diagram shows the investment opportunity set for portfolios containing stocks A and B, with Point A on the graph representing a portfolio with

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The following diagram shows the investment opportunity set for portfolios containing stocks A and B, with Point A on the graph representing a portfolio with 100% in stock A and Point B representing a portfolio with 100% in stock B. Use the diagram to answer the following true or false questions. 9.00% 8.00% N 7.00% 6.00% w 5.00% Portfolio Expected Return B 4.00% 3.00% 2.00% 1.00% 0.00% 0.00% 0.50% 2.50% 3.00% 1.00% 1.50% 2.00% Portfolio Standard Deviation If short sales are allowed and available but riskless lending and borrowing is not, an investor can construct a portfolio with an expected return that exceeds 9%. O True False The following diagram shows the investment opportunity set for portfolios containing stocks A and B, with Point A on the graph representing a portfolio with 100% in stock A and Point B representing a portfolio with 100% in stock B. Use the diagram to answer the following true or false questions. 9.00% 8.00% N 7.00% 6.00% w 5.00% Portfolio Expected Return B 4.00% 3.00% 2.00% 1.00% 0.00% 0.00% 0.50% 2.50% 3.00% 1.00% 1.50% 2.00% Portfolio Standard Deviation If short sales are allowed and available but riskless lending and borrowing is not, an investor can construct a portfolio with an expected return that exceeds 9%. O True False

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