Given an Optimal Risky Portfolio with Expected Return of 16

question 52

Multiple Choice

Given an optimal risky portfolio with expected return of 16%, standard deviation of 20%, and a risk-free rate of 4%, what is the slope of the best feasible CAL?

• A) 0.60
• B) 0.14
• C) 0.08
• D) 0.36
• E) 0.31

Define and distinguish between various types of human behavior and motives, including aggression, motivation, and drives.

Recognize the basic emotions and theories related to emotional experiences.

Understand the impact of psychological factors on physical health and behavior.

Interpret the role of physiological changes in the experience of emotions.

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Definitions:

Cost of Equity

The return that a company requires to decide if an investment meets capital return requirements and is often used in financial modeling for valuing a company.

Market Capitalization Rate

The expected rate of return on a portfolio consisting of all publicly traded securities, weighted by market capitalization.

PVGO

Present Value of Growth Opportunities; the portion of a company's stock price that is attributed to its expected earnings growth.

Free Cash Flow

The amount of cash generated by a company after accounting for capital expenditures, necessary to maintain or expand the asset base.