The optimal risky portfolio can be identified by finding: I. The minimum-variance point on the efficient frontier
II. The maximum-return point on the efficient frontier and the minimum-variance point on the efficient frontier
III. The tangency point of the capital market line and the efficient frontier IV. The line with the steepest slope that connects the risk-free rate to the efficient frontier
A. I and II only
B. II and III only
C. III and IV only
D. I and IV only Consider the CAPM.
The risk-free rate is 5%, and the expected return on the market is 15%. What is the beta on a stock with an expected return of 17%?
A..5
B. .7
C. 1
D. 1.2