Question
14. In a universe with just two assets, a risky asset and a risk-free asset, what is the slope of the Capital Allocation Line if
14.
In a universe with just two assets, a risky asset and a risk-free asset, what is the slope of the Capital Allocation Line if the Expected return of the risky asset is 6.22% and the standard deviation of the returns of the risky asset is 23.4%. The return on the risk-free asset is 3.21%
Report 2 decimals.
17. An investment opportunity has 4 possible outcomes. The possible returns in each of these outcomes are -7.1%, 0.1%, 4.8% and 14.6%. If each of these outcomes is equally likely, what is the risk (as measured by the population standard deviation) of this investment? Provide the answer as a % with 1 decimal rounded off. If your answer is 3.56%, just enter/type "3.6".
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