Given an Optimal Risky Portfolio with Expected Return of 12

question 55

Multiple Choice

Given an optimal risky portfolio with expected return of 12%, standard deviation of 26%, and a risk free rate of 3%, what is the slope of the best feasible CAL?

• A)0.64
• B)0.14
• C)0.08
• D)0.35

---

Definitions:

Working Memory Capacity

The amount of information that can be temporarily held and manipulated in the mind for cognitive tasks like problem-solving and language comprehension.

Inspection Time

The minimal amount of time an individual needs to distinguish between two stimuli, used as a measure of cognitive speed.

Perseveration

The tendency to repeat a response inappropriately; often a result of deficits in executive control caused by prefrontal lesions.

Mental Speed

The rapidity with which an individual can process information, make decisions, and solve problems.