Use the Following Three Statements to Answer This Question

question 63

Multiple Choice

Use the following three statements to answer this question:
I.The Capital Market Line (CML) must always be upward sloping, and it predicts required returns.
II.The Capital Market Line (CML) is based on expected rates of return, so it is ex post.
III.The Capital Market Line (CML) slope is the Sharpe ratio.

• A)I, II, and III are correct.
• B)I, II, and III are incorrect.
• C)I and III are correct and II is incorrect.
• D)I is incorrect, II and III are correct.

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Definitions:

Petty Cash Fund

A small amount of cash kept on hand for making immediate, minor expenses in a business.

Custodian

An entity or individual responsible for safeguarding and managing assets or securities, ensuring their safekeeping and proper administration.

Disbursements

Money paid out by a business or organization; expenses or amounts spent.

Petty Cash Fund

A small amount of cash kept on hand for making immediate payments for small, incidental expenses.