1. What happens when we add the risk-free asset to a portfolio of risky assets?
2. How does an investors preference shift with the introduction of the risk free asset?
3. What do we call the one portfolio thats left over from all of Markowitz portfolios? What do we call that same portfolio when we aggregate across all investors and all assets?
4. What do we call the line that connects the risk free asset to that aggregated portfolio?
5. How do we show that it is actually a straight line and not a curve?
6. What relationship does the above-mentioned line give?
7. To what investments does the above-mentioned relationship apply?
8. What of the two major types of risk is eliminated and what is not eliminated by diversification?
9. What relationship does the above-mentioned line give?
10. To what investments does the above-mentioned relationship apply?
11. What of the two major types of risk is eliminated and what is not eliminated by diversification?
12. What statistical measure do we initially use for the relevant or non-diversifiable risk?