Refer to Figure 5-1. Marginal private benefit is represented by which curve?

In the market for insurance, low risk customers are not served because

a. They do not like buying insurance b. They are more costly to serve c. Products designed to be attractive to them are also attractive to high risk types. d. All of the above

Refer to the graph. Suppose a particular financial asset's risk and return profile puts it at point E. The process of arbitrage will:

A.  move the financial asset to point G on the Security Market Line.
B.  move the financial asset to point D.
C.  move the financial asset to point F.
D.  not change the financial asset's position on the Security Market Line.