Given an Optimal Risky Portfolio with Expected Return of 13

question 12

Multiple Choice

Given an optimal risky portfolio with expected return of 13%, standard deviation of 26%, and a risk free rate of 5%, what is the slope of the best feasible CAL?

• A) 0.60
• B) 0.14
• C) 0.08
• D) 0.36
• E) 0.31

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Definitions:

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Private Practices

Independent business ventures where professionals offer their services to clients on a fee-for-service basis, often in healthcare.

First Years

The initial period or early stages of an event, process, or individual's life, often characterized by learning and growth.

Occupational Burnout

A state of physical, emotional, and mental exhaustion caused by prolonged and excessive stress at work.