Question

The Sharpe-optimal portfolio will be the investment opportunity set which lies on a straight line that has which of the following characteristics?
A. the flattest slope when the line intersects the vertical axis at the risk-free rate
B. the steepest slope when the line intersects the vertical axis at the risk-free rate
C. the steepest slope when the line intersects the vertical axis at the origin
D. the flattest slope when the line intersects the vertical axis at the market rate
E. the steepest slope when the line intersects the vertical axis at the market rate

Answer

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