Use the diagrams to answer the question q3- This question relates to Diagrams 6 - 9 from the Online Quiz 9.2 diagrams, each of which shows a set of portfolios plotted on a set of risk/return axes. Which diagram shows (in red) the set of efficient portfolios in the presence of a risk-free asset? Select one: a. Diagram 6 b. Diagram 7 c. Diagram 8 d. Diagram 9

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter6: Risk And Return
Section6.7: The Relationship Between Risk And Return In The Capital Asset Pricing Model
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9.2- Use the diagrams to answer the question

q3- This question relates to Diagrams 6 - 9 from the Online Quiz 9.2 diagrams, each of which shows a set of portfolios plotted on a set of risk/return axes.

Which diagram shows (in red) the set of efficient portfolios in the presence of a risk-free asset?

Select one:
a.

Diagram 6

b.

Diagram 7

c.

Diagram 8

d.

Diagram 9

DIAGRAM 6
Expected return (%)
Standard deviation
of returns (%)
DIAGRAM 7
Expected return (%)
Standard deviation
of returns (%)
DIAGRAM 8
Expected return (%)
Standard deviation
of returns (%)
DIAGRAM 9
Expected return (%)
Standard deviation
of returns (%)
Transcribed Image Text:DIAGRAM 6 Expected return (%) Standard deviation of returns (%) DIAGRAM 7 Expected return (%) Standard deviation of returns (%) DIAGRAM 8 Expected return (%) Standard deviation of returns (%) DIAGRAM 9 Expected return (%) Standard deviation of returns (%)
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