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

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Definitions:

Contract Formed

The process of creating a legally binding agreement, requiring offer, acceptance, consideration, and mutual consent among parties.

Negotiable

Capable of being transferred or exchanged for value between parties, often referring to financial instruments like checks or bills of exchange.

Negotiable Instrument

A written, signed document that promises payment of a specified sum of money to the bearer or a named party.

Pay To The Order

A directive on a negotiable instrument, such as a check, indicating that the designated amount should be paid to the entity or person specified.