Given an Optimal Risky Portfolio with Expected Return of 6

question 17

Multiple Choice

Given an optimal risky portfolio with expected return of 6%, standard deviation of 23%, and a risk free rate of 3%, what is the slope of the best feasible CAL?

• A)0.64
• B)0.39
• C)0.08
• D)0.13

---

Definitions:

Dementia Praecox

An outdated term once used to describe what is now known as schizophrenia, characterized by early onset of disconnection from reality.

Psychotic Mania

A severe form of mania that includes symptoms of psychosis such as hallucinations or delusions, often observed in bipolar disorder.

Multiple Personality Disorder

Also known as Dissociative Identity Disorder, it is a severe condition in which two or more distinct identities, or personality states, are present in—and alternately take control of—an individual.

Derailment

A thought process characterized by a sudden shift from one topic to another, which can appear incoherent to the listener; often seen in psychotic disorders.