Suppose that the return on the risk-free asset is rRFrRF = 15%, the return on the market portfolio is r̂Mr̂M = 20%, the market risk is σMσM = 10%, and the portfolio risk is σpσp = 15%. Then the...

Suppose that the return on the risk-free asset is rRFrRF = 15%, the return on the market portfolio is r̂Mr̂M = 20%, the market risk is σMσM = 10%, and the portfolio risk is σpσp = 15%. Then the expected rate of return on an efficient portfolio equals    .

Generally, a less risky portfolio would havea lower   rate of return.