You Invest $1000 in a Risky Asset with an Expected

question 69

Multiple Choice

You invest $1000 in a risky asset with an expected rate of return of 0.17 and a standard deviation of 0.40 and a T-bill with a rate of return of 0.04.
-The slope of the Capital Allocation Line formed with the risky asset and the risk-free asset is equal to

• A)0.325.
• B)0.675.
• C)0.912.
• D)0.407.
• E)Cannot be determined.

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Definitions:

Abandonment

The act of leaving someone without support or care, often resulting in emotional or physical distress for the person abandoned.

DSM-5 Approach

An approach based on the Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, which is a standardized classification of mental disorders used by mental health professionals.

Personality Disorder

Chronic pattern of maladaptive cognition, emotion, and behavior that begins by adolescence or early adulthood and continues into later adulthood.

Pathological Traits

Characteristics or behaviors that are extreme, maladaptive, and indicative of some form of mental disorder or psychological dysfunction.