1.

The risk-free rate is 2 percent. The Market Portfolios expected return and standard deviation are 9 percent and 25 percent respectively. What is the slope of the Capital Market Line (CML)?

Group of answer choices

3.57

2.78

0.36

0.28

2.

The following chart shows the attainable portfolios of two stocks, Boeing (BA) and Microsoft (MSFT). Microsofts expected return is 18.6%, and its standard deviation is 29%. Boeings expected return is 7.7% and its standard deviation is 22.8%. The standard deviation of a portfolio invested 50 percent in Microsoft and 50 percent in Boeing,

Group of answer choices

is close to 22.5 percent.

is close to 26 percent.

is 0 percent.

is close to 20 percent.

3.

The following chart shows the attainable portfolios of two stocks, Boeing (BA) and Microsoft (MSFT). Microsofts expected return is 18.6%, and its standard deviation is 29%. Boeings expected return is 7.7% and its standard deviation is 22.8%.

Which of the following is true?

Group of answer choices

A high risk-averse investor would choose a portfolio 100 percent invested in Boeing.

A high risk-averse investor would choose a portfolio 90 percent invested in Microsoft.

A low risk-averse investor would choose a portfolio 100 percent invested in Microsoft.

A low risk-averse investor would choose a portfolio 90 percent invested in Boeing.