Given an Optimal Risky Portfolio with Expected Return of 12

question 17

Multiple Choice

Given an optimal risky portfolio with expected return of 12%, standard deviation of 26%, and a risk free rate of 3%, what is the slope of the best feasible CAL?

• A) 0.64
• B) 0.14
• C) 0.08
• D) 0.35
• E) 0.36

---

Definitions:

Control Account

An account in the general ledger that summarizes the balances of a group of related accounts to keep the general ledger streamlined and manageable.

Control Accounts

Summary accounts in the general ledger that consolidate the details recorded in subsidiary ledgers.

General Ledger

A complete record of all financial transactions over the life of a company.

Accounting Information System

A system designed to collect, store, manage, process, retrieve, and report financial data for business operations.