Given an Optimal Risky Portfolio with Expected Return of 12

question 65

Multiple Choice

Given an optimal risky portfolio with expected return of 12% and standard deviation of 26% and a risk free rate of 5%, what is the slope of the best feasible CAL

• A)0.64
• B)0.27
• C)0.08
• D)0.33
• E)0.36

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Definitions:

Corporate Veil

The corporate veil is the legal concept separating the actions of a corporation from its shareholders, protecting them from personal liability.

Shareholder

An owner of a corporation, who has no inherent right to manage the corporation but has liability limited to his capital contribution. Also called stockholder.

Obligations

Duties or responsibilities that are legally or morally binding.

Directors And Officers

Individuals appointed or elected to oversee the major policies and decisions of a company, corporation, or non-profit organization.