Choose TRUE/FALSE for the statements below from A to C. Make your selection clear and distinct, otherwise you will not get credit.

Let an investor be considering two risky portfolios: A and B to construct a complete portfolio C with a risk-free asset. The reward-to-variability ratio of portfolio A is 0.12 and reward to variability ratio of portfolio B is 0.14.

A. Lower reward-to-variability ratio of portfolio B implies that its capital allocation line is steeper than that of A.

B. CAL(A )will plot above CAL(B).

C. Combination of portfolio B and risk-free asset will provide lower expected return for any level of risk than combination of portfolio A and riskfree asset.