Assume the CAPM Is the Correct Asset Pricing Model,the Risk-Free $-60 \%$

question 15

Multiple Choice

Assume the CAPM is the correct asset pricing model,the risk-free rate of return is 6%,and the market portfolio has an expected return and a standard deviation of 16% and 0.10%,respectively.An investor has a portfolio consisting of asset A,which has a beta of 1.6,and asset B,which has a beta of 0.6.If the investor wishes to earn a return identical to that of the risk-free asset,what weight should the investor place in assets A and B?

• A) \( -60 \% \) in asset \( \mathrm{A} \) and \( 160 \% \) in asset \( \mathrm{B} \)
• B) \( 0 \% \) in asset \( A \) and \( 100 \% \) in asset \( B \)
• C) \( 20 \% \) in asset \( A \) and \( 800 \% \) in asset \( B \)
• D) \( 60 \% \) in asset A and \( 40 \% \) in asset B

Comprehend the mechanisms of color vision and the theories explaining it.

Identify the processes involved in visual adaptation and acuity.

Distinguish between the components involved in the sense of hearing.

Learn the process and elements involved in the perception of sound.

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