Question: 16. Draw the efficient frontier. Using the graph explain to me the difference between the CML and SML. How do those two lines relate to
16. Draw the efficient frontier. Using the graph explain to me the difference between the CML and SML. How do those two lines relate to the two risk-adjusted return ratios from the previous question?
17. In terms of risk and return, what would be a dominant portfolio? What is a corner portfolio? Recreate the efficient frontier from the previous question. Add six different portfolios to the graph. Make sure one is a corner portfolio. Place an X on the graph in a spot representing the location of the most dominant portfolio. Place a Y on the graph in a spot representing the location of a corner portfolio. Place a Z on the graph in a spot representing the portfolio that is most clearly being dominated.
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