You Have Analyzed a Market Portfolio with an Expected Return

question 18

Multiple Choice

You have analyzed a market portfolio with an expected return of 18% and a standard deviation of 10%. If the riskfree return is 6%, the slope of the Capital Market Line is

• A) .75.
• B) 1.33.
• C) 1.20.
• D) - .75.

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Definitions:

Promise To Pay

A written agreement to repay a borrowed amount under specified terms.

Specific Asset

A particular identified asset, often marked for a specific use or project within a company's balance sheet.

Account

A record within financial bookkeeping that tracks financial transactions of a specific nature.

Revenue

The total earnings from goods or services sold, stemming from a company's main operational activities.