Problem $6-10$

You are evaluating various investment opportunities currently available and you have calculated expected returns and standard deviations for five different well$-$diversified portfolios of risky assets:

Q:

R:

S:

T:

U:

b$.$ Using your computations in Part $($a$),$ explain which of these five portfolios is most likely to be the market portfolio. Round your answer to four decimal places.

Portfolio

$|$ has the $|$

ratio of risk premium per unit of risk,

$,$ of these five portfolios so it is most likely the market portfolio.

Choose the correct CML graph.

The correct graph is $,.$