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Choose the correct statements within Capital Allocation Line (CAL) concept: 1) An investor can allocate 100% of his funds into risk free asset. 2) An
Choose the correct statements within Capital Allocation Line (CAL) concept:
1) An investor can allocate 100% of his funds into risk free asset.
2) An investor can allocate more than 100% of his funds into risky asset.
3) An investor can allocate less than 100% of his funds into risky asset, and this situation is called borrowing.
4) The more risk-seeking an investor is, the higher % of funds he will allocate to risk free asset.
5) Slope of CAL is equal to Sharpe ratio.
1, 2, 3 | ||
1, 2, 5 | ||
2, 3, 5 | ||
1, 4, 5 |
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