1. The nominal rate of return is
the rate of return you earn after subtracting out the rate of inflation.
the additional purchasing power that a risky asset provides.
a portfolio's excess return (i.e., Rp - Rf).
the everyday quoted rate of return and includes the risk-free rate plus a variety of risk premiums.
2. The points on a CAL represent
the risk return trade off between the risky portfolio and the risk free asset (T-bill)
the different combinations between the risky portfolio and risk free asset
the opportunity set of all possible combinations of risky assets and their corresponding returns
Both A and B