You Invest $1,000 in a Complete Portfolio

question 48

Multiple Choice

You invest $1,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 16% and a standard deviation of 20% and a treasury bill with a rate of return of 6%.
-The slope of the capital allocation line formed with the risky asset and the risk-free asset is _________.

• A) 1.40
• B) 0.80
• C) 0.50
• D) 0.40