The Slope of the Efficient Frontier Is Calculated as Follows

question 65

Multiple Choice

The slope of the efficient frontier is calculated as follows

• A) E(R_portfolio)/E(σ_portfolio)
• B) E(σ_portfolio)/ E(R_portfolio)
• C) DE(R_portfolio)/DE(σ_portfolio)
• D) DE(σ_portfolio)/DE(R_portfolio)
• E) None of the above

---

Definitions:

Interest Rate

The percentage at which interest is paid by a borrower for the use of money they borrow from a lender.

Credit Transaction

A financial agreement where a buyer receives goods or services with the promise to pay the seller at a future date, typically involving interest or finance charges.

China

A sovereign nation located in East Asia, known for its rich history, cultural heritage, and being the world's most populous country.

Puffery

Exaggerated or boastful statements made by sellers about a product or service that are considered opinion rather than fact.