The capital allocation line provided by a risk-free security and N risky securities is A. the line that connects the risk-free rate and the portfolio of the risky securities that has the highest expected return on the efficient frontier. B. the line tangent to the efficient frontier of risky securities drawn from the risk-free rate. C. the horizontal line drawn from the risk-free rate. D. the line that connects the risk-free rate and the global minimum-variance portfolio of the risky securities.

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A: Portfolios that blend risk and return optimally are represented by the capital market line (CML).…

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A: Since you have asked multiple question, we will solve the first question for you. If you want any…

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A: The question is fill in the blanks and is related with Portfolio Management.

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Q: ma.4

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A: 1.

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A: The correct answer to the question is option D. All of the above.

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.