Question: [A] [E] Question 24 Select the best descriptions for each of the letters that appear in square brackets on the figure below. As discussed in

Select the best descriptions for each of the letters that appear in square brackets on the figure below. As discussed in class this is a "picture of the CAPM" and is not a regression line. Canvas doesn't allow the lists of possible matches to include subscripts. So in the list of possible answers below assume E[rm]=E[rm], and rf =rf, and sigmam =m. You should not have to use the same answer twice. Labe verti axis : Label for horizontal axis =[B] [ Choose] negative alpha expected return on portfolio with a sigma equal to 1.5 rf Sharpe ratio Tangency portfolio positive alpha expected return on portfolio with a beta equal to 1.5 residual E[rm] E[rm]-rf beta standard deviation of returns sigmam expected returns [Choose]
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