Use the following information about two stocks $($Squid Canneries Ltd $-$ SCL$,$ The Android's Dungeon $-$ TAD$),$ T$-$Bill, market portfolio, and Dr$.$ Nick Riviera's portfolio to answer questions $13-17$ below:

Asset Price per share$($$$)$ Expected return Variance Covariance with rm

SCL $7523\%0\mathrm{.}08410\mathrm{.}06912$

TAD $2511\%0\mathrm{.}09000\mathrm{.}02304$

T$-$Bill $5\%0\mathrm{.}00000\mathrm{.}00000$

Market $21\%0\mathrm{.}05760\mathrm{.}05760$

Dr$.$ Nick Riviera's portfolio: he owns $1,000$ shares of SCL$,$ $$50,000($market value$)$ of T$-$Bills, and he has sold short $1,000$ shares of TAD.

$($c$)$ What is true about the risk$-$return tradeoff Dr$.$ Nick's portfolio?

A$.$ His portfolio is on the Security Market Line only.

B$.$ His portfolio is on the Capital Market Line only.

C$.$ His portfolio is on both the Capital Market Line and the Security Market Line.

D$.$ His portfolio is on neither the Capital Market Line nor the Security Market Line.

Group of answer choices

D

A

B

C