In the accompanying graph, point Y represents the
A) rate of return for the market portfolio.
B) rate of return for the risk-free asset.
C) risk premium for the market portfolio.
D) compensation for time preference for a given asset.

Question

In the accompanying graph, point Y represents the
A) rate of return for the market portfolio. 
B) rate of return for the risk-free asset. 
C) risk premium for the market portfolio. 
D) compensation for time preference for a given asset.

Quizplus · Accepted Answer

Point Y represents the rate of return for the risk-free asset, which is generally considered the risk-free rate of return.

In the Accompanying Graph, Point Y Represents the