If an investor has a portfolio that has constant proportions in T-bills and the market portfolio, the portfolio's characteristic line will plot as a line with ________. If the investor can time bull markets, the characteristic line will plot as a line with ________.

A) a positive slope; a negative slope
B) a negative slope; a positive slope
C) a constant slope; a negative slope
D) a negative slope; a constant slope
E) a constant slope; a positive slope

Characteristic Line

In finance, it's a line generated in a scatterplot by regressing the returns of a security against the returns of the market, used to assess the security's sensitivity to market movements.

T-Bills

Short-term debt securities issued by the U.S. Treasury to finance government spending, seen as low-risk investments.

Market Portfolio

A theoretical bundle of investments that contains all available assets in the market, representing the entire investment universe at a given time, used in financial theory to model returns.