Suppose Tim and Sara care only about the mean and standard deviation of their portfolio return. Tim is more risk averse than Sara. They agree on the opportunity set available. Suppose that Sara's total portfolio is the tangency portfolio. Which of these portfolios (if any) is Tim's total portfolio?

Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.