You Invest $100 in a Risky Asset with an Expected

question 32

Multiple Choice

You invest $100 in a risky asset with an expected rate of return of 0.11 and a standard deviation of 0.21 and a T-bill with a rate of return of 0.045. The slope of the capital allocation line formed with the risky asset and the risk-free asset is equal to

• A)0.4667.
• B)0.8000.
• C)0.3095.
• D)0.41667.

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Definitions:

Variability

The extent to which data points in a statistical or data set differ from each other and from the average.

Biopsychosocial Organisms

are entities that demonstrate how biological, psychological, and social factors combine and interact to influence an individual's health and behavior.

Levels of Analysis

A framework used in various fields to examine issues from different standpoints, such as individual, group, or societal.

Personality Traits

Enduring characteristics or qualities that determine an individual's behavior, thoughts, and emotions, shaping their overall personality.