- Option : A
- Explanation : The standard deviation of the portfolio is directly proportional to the correlation of assets within the portfolio.

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- Option : B
- Explanation : The efficient frontier is the part of the minimum variance frontier which represents the set of portfolios that will give the highest return at each risk level.

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- Option : B
- Explanation : The use of leverage and the combination of a risk-free asset and the optimal risky asset will dominate the efficient frontier of risky assets (the Markowitz efficient frontier).

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- Option : C
- Explanation : The optimal risky portfolio lies at the point of tangency between the capital allocation line and the efficient frontier of risky assets.

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