Given an Optimal Risky Portfolio with Expected Return of 18

question 42

Multiple Choice

Given an optimal risky portfolio with expected return of 18% and standard deviation of 21% and a risk free rate of 5%,what is the slope of the best feasible CAL?

• A)0.64
• B)0.14
• C)0.62
• D)0.33
• E)0.36

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Definitions:

Red

A color at the end of the visible spectrum of light, next to orange and opposite violet, with a dominant wavelength of approximately 620-740 nanometers.

Sensory Adaptation

The process in which sensory receptors grow accustomed to constant, unchanging levels of stimuli over time.

Sensory Fatigue

A condition where there is a temporary decrease in the sensitivity of a sense after prolonged exposure to a stimulus.

Sensory Abilities

The capabilities related to the reception and processing of sensory information from the environment by the sensory organs.