Using the Formula for the Capital Market Line If the Risk-Free

question 30

Essay

Using the formula for the capital market line if the risk-free rate (Rf)is 7 percent,the market rate of return (Km)is 12 percent,the market standard deviation (sm)is 6 percent,and the standard deviation of the portfolio (sp)is 15 percent,compute the anticipated return (Kp).

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Definitions:

EEG Waves

The patterns of electrical activity in the brain recorded by EEG, indicative of different states of brain function or pathology.

Brain Disease

A broad category of illnesses that affect the structure or function of the brain.

EEG

Electroencephalogram, a test that measures electrical activity in the brain using small, flat metal discs attached to the scalp.

High Frequency

Refers to waves that have a very short wavelength or a high rate of oscillation or vibration.