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

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Definitions:

Carstensen

Refers to Laura L. Carstensen, a psychologist known for her research on aging, including the socioemotional selectivity theory which suggests that as people age, they prioritize emotionally meaningful experiences and relationships.

Terminal Illness

A disease or condition that is likely to lead to death within a relatively short time frame, often without a cure.

Young Adult

An individual in the age range of late teens to early 30s, often considered a time of transition and self-discovery.

Aging Homosexuals

Refers to the aging population within the LGBT community, focusing on their unique social, health, and psychological needs.