Given an Optimal Risky Portfolio with Expected Return of 13

question 79

Multiple Choice

Given an optimal risky portfolio with expected return of 13% and standard deviation of 26% and a risk free rate of 5%, what is the slope of the best feasible CAL

• A)0.60
• B)0.14
• C)0.08
• D)0.36
• E)0.31

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Definitions:

Interchangeable Parts

Components that are, for practical purposes, identical. They are made to specifications that ensure they are so nearly identical that they will fit into any device of the same type.

Operations Management

The aspect of management dedicated to the design, administration, and supervision of the manufacturing process, along with the modification of business operations in the generation of products or services.

Nineteenth Century

The Nineteenth Century is the period from 1801 to 1900, characterized by significant industrial, cultural, and political changes worldwide.

Interchangeable Parts

Components designed to be exactly similar so they can be easily replaced or assembled without customization.