A Risk-Free Asset Is Available at 5% Interest

question 1

Multiple Choice

A risk-free asset is available at 5% interest.Another asset is available with a mean rate of return of 15% but with a standard deviation of 5%.An investor is considering an investment portfolio consisting of some of each stock.On a graph with standard deviation on the horizontal axis and mean on the vertical axis, the budget line that expresses the alternative combinations of mean return and standard deviation possible with portfolios of these assets is a straight line with

• A)slope 2.
• B)slope -3.
• C)increasing slope as you move left.
• D)slope -1.
• E)slope -1/3.

---

Definitions:

Auxiliary Start

Auxiliary start refers to additional methods or devices used to start an electric motor or engine besides the primary starting system, enhancing reliability or performance.

Run Winding

The primary winding in a motor that is connected during the run operation, responsible for creating the magnetic field that turns the motor.

Three-Phase Motors

Electric motors designed to operate on a three-phase alternating current (AC), providing advantages in power efficiency and smoother operation compared to single-phase motors.