With respect to the graph above (PBEHP, 12 Ed, page 191).

Which of the following statements is incorrect?

		The portfolios represented by the points on the line through Rf and M dominate the portfolios represented by the line Rf through T
		The lowest risk portfolio is a portfolio of 100% in government bonds, at point Rf
		For investors the levered (borrowing) portfolios from M up to N provide higher returns than the portfolios from Rf to M.
		The lines U1, U2, and U3 represent the utility function of three different investors, U1 represents a risk averse investor, U2 represents a risk neutral investor and U3 is a risk seeker
		To reach a point on the line Rf through to N, that is above M the weight or proportion of Rf must be negative

Figure 7.11 Borrowing Lending 1 Capital market line Expected return E(R)a Efficient frontier --- RZ - - - - OM Risk (o)