Given an Optimal Risky Portfolio with Expected Return of 20

question 58

Multiple Choice

Given an optimal risky portfolio with expected return of 20%, standard deviation of 24%, and a risk free rate of 7%, what is the slope of the best feasible CAL?

• A) 0.64
• B) 0.14
• C) 0.62
• D) 0.33
• E) 0.54

---

Definitions:

Cost Variances

The difference between expected costs and actual costs, detailed in financial management and accounting to help identify areas of unexpected expense or efficiency.