Given an Optimal Risky Portfolio with Expected Return of 12

question 75

Multiple Choice

Given an optimal risky portfolio with expected return of 12% and standard deviation of 26% and a risk free rate of 3%, what is the slope of the best feasible CAL

• A)0.64
• B)0.14
• C)0.08
• D)0.35
• E)0.36

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Definitions:

Freudian

Pertaining to or involving the theories and ideas of Sigmund Freud, especially regarding the unconscious, psychosexual stages, and the structure of personality.

Neo-Freudian

Refers to psychologists who followed Freud but developed their own theories, often emphasizing social and cultural factors over sexual ones.

Transference

In psychotherapy, the process by which patients project feelings about significant others from their past onto the therapist.

Inferiority Complex

A psychological state in which individuals feel deep feelings of inadequacy and a lack of self-worth compared to others.