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:

Adhesion Belt

A protein complex located just below the tight junctions in epithelial cells, contributing to the formation of an adhesive junction that holds cells together.

Apocrine

A type of gland that secretes substances (such as sweat) by shedding part of the cell, found in various parts of the body including armpits and groin.

Holocrine

A mode of secretion in which the entire cell disintegrates to release its substances, often seen in sebaceous glands.

Exocrine

Pertaining to glands that secrete their products through ducts either onto the surface of an organ or outside the body.