The Sharpe-Optimal Portfolio Will Be the Investment Opportunity Set Which

question 39

Multiple Choice

The Sharpe-optimal portfolio will be the investment opportunity set which lies on a straight line that has which of the following characteristics?

• A)the flattest slope when the line intersects the vertical axis at the risk-free rate
• B)the steepest slope when the line intersects the vertical axis at the risk-free rate
• C)the steepest slope when the line intersects the vertical axis at the origin
• D)the flattest slope when the line intersects the vertical axis at the market rate
• E)the steepest slope when the line intersects the vertical axis at the market rate

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Definitions:

Introspection

The examination or observation of one's own mental and emotional processes.

Hypnagogic Perception

Experiences of vivid sensory phenomena that occur during the transition from wakefulness to sleep.

Delta Brain

Pertaining to the delta brain waves, which are the slowest brain waves and are associated with deep sleep and unconscious information processing.

Childish Modes

Patterns of behavior that are typically associated with children, such as dependency, simplicity in problem-solving, or immediate gratification seeking.