You Invest $100 in a Risky Asset with an Expected

question 13

Multiple Choice

You invest $100 in a risky asset with an expected rate of return of 0.11 and a standard deviation of 0.21 and a T-bill with a rate of return of 0.045.
-The slope of the Capital Allocation Line formed with the risky asset and the risk-free asset is equal to

• A)0.4667.
• B)0.8000.
• C)0.3095.
• D)0.41667.
• E)Cannot be determined.

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Definitions:

Contractions

The tightening and shortening of muscles, which can occur in various contexts, such as labor in childbirth or as part of physical exercise.

Neonatal Jaundice

Condition, in many newborn babies, caused by immaturity of liver and evidenced by yellowish appearance; can cause brain damage if not treated promptly.

Anoxia

A condition characterized by an absence of oxygen supply to an organ or a tissue.

Liver

A vital organ that performs essential functions such as detoxifying harmful substances, synthesizing proteins, and producing biochemicals necessary for digestion.