Question: choose one option below The Mean-Variance optimization model finds the portfolio with the smallest variance for a given expected return. These portfolios lie along the

choose one option below

The Mean-Variance optimization model finds the portfolio with the smallest variance for a given expected return. These portfolios lie along the Efficient Frontier. In the presence of a risk-free asset, the Efficient Frontier becomes a straight line with one point of tangency on the original Efficient Frontier. This point is best described as:

a 50%-50% portfolio of stocks and bonds

a portfolio of all assets at their market weights

the Treasury Bill rate

the risk-free rate

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