On the graph:

Point B has the highest ER and the 2nd lowest standard deviation

Point C has the lowest standard deviation and the lowest ER and is on the efficiency frontier curve

Point A is on the efficient frontier curve and has the 2 highest ER and has the 3rd highest standard deviation

Point D is the 2 lowest in ER and 1 in the standard deviation

X axis: Standard deviation

Y axis: ER

1. Portfolio C is the tangency portfolio because it has the lowest standard deviation

2. Portfolio D is not chosen by risk averse investors

3. Portfolio B is attainable because it has the Highest ER.

A) 1 is correct

B) 2 is correct

C) 3 is correct

D) 1 and 3 are correct

E) 1 and 2 are correct