The risky portfolio on the efficient frontier whose tangent line cuts the vertical axis at the risk-free rate is best described as:
A) market portfolio.
B) efficient frontier.
C) tangent portfolio.
D) risk-free intercept.

Question

Quizplus · Accepted Answer

The tangent portfolio is the risky portfolio on the efficient frontier whose tangent line cuts the vertical axis at the risk-free rate.

The Risky Portfolio on the Efficient Frontier Whose Tangent Line