Given an Optimal Risky Portfolio with Expected Return of 6

question 54

Multiple Choice

Given an optimal risky portfolio with expected return of 6% and standard deviation of 23% and a risk free rate of 3%, what is the slope of the best feasible CAL

• A)0.64
• B)0.39
• C)0.08
• D)0.13
• E)0.36

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Definitions:

Temperature

A measure of the thermal energy of a system, indicating how hot or cold it is.

Gas Particles

The small, discrete units that compose gases, moving freely and randomly and often described by the kinetic molecular theory.

Distances

Measurements of the space between two points, which can be measured in various units such as meters, miles, or light-years, depending on the context.

Gas Particles

The smallest constituents of a gas, moving freely and randomly, and obeying the gas laws.