The Sharpe-Optimal Portfolio Will Be the Investment Opportunity Set Which

question 39

Multiple Choice

The Sharpe-optimal portfolio will be the investment opportunity set which lies on a straight line that has which of the following characteristics?

• A)the flattest slope when the line intersects the vertical axis at the risk-free rate
• B)the steepest slope when the line intersects the vertical axis at the risk-free rate
• C)the steepest slope when the line intersects the vertical axis at the origin
• D)the flattest slope when the line intersects the vertical axis at the market rate
• E)the steepest slope when the line intersects the vertical axis at the market rate

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Definitions:

Oral Medium

A method of communication in which information is transmitted through spoken words, as opposed to written texts or visual images.

In-Person Channel

A communication or distribution method that involves direct, face-to-face interaction.

Nonverbal Cues

Communication signals given through body language, facial expressions, gestures, and other physical behaviors.

Richer Medium

A communication tool that is capable of conveying more complex and nuanced information, often through multiple channels like text, audio, and video.