Given an Optimal Risky Portfolio with Expected Return of 14

question 11

Multiple Choice

Given an optimal risky portfolio with expected return of 14% and standard deviation of 22% and a risk free rate of 6%,what is the slope of the best feasible CAL?

• A)0.64
• B)0.14
• C)0.08
• D)0.33
• E)0.36

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Definitions:

Emotional Reactions

Responses that involve feelings and are typically prompted by environmental stimuli or internal thoughts.

Cortex

The outer layer of the brain involved in various high-level brain functions, including sensation, perception, memory, association, thought, and voluntary physical action.

Spinal Cord Injuries

Damage to the spinal cord that results in a loss of function, such as mobility or sensation.

Cannon-Bard Theory

A theory of emotion that suggests emotions and physiological responses occur simultaneously, not sequentially.