Given an Optimal Risky Portfolio with Expected Return of 12

question 47

Multiple Choice

Given an optimal risky portfolio with expected return of 12%, standard deviation of 26%, and a risk free rate of 5%, what is the slope of the best feasible CAL?

• A) 0.64
• B) 0.27
• C) 0.08
• D) 0.33
• E) 0.36

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Definitions:

Internal Change

Describes a transformation or shift that occurs within an entity, individual, or system, affecting its inherent traits or operations.

Observable Behaviour

Actions or reactions that are visible and can be seen or measured directly, often used in the study of psychology and behavior analysis.

Expert Power

The influence and authority someone possesses due to their expertise, skills, or knowledge in a particular area.

Nobel Prize

Prestigious awards given annually in several categories including Peace, Literature, and various sciences, recognizing significant contributions.