If I create portfolio consisting of three stocks and build efficient frontier for this portfolio and if there is a risk free rate for treasury bills and then I draw tangent line from risk free rate on vertical axis to the efficient frontier of graph, than what the tangent point will mean?
closed as off-topic by Bob Jansen♦ Oct 24 '15 at 7:57
This question appears to be off-topic. The users who voted to close gave this specific reason:
- "Basic financial questions are off-topic as they are assumed to be common knowledge for those studying or working in the field of quantitative finance." – Bob Jansen