Question
In a particular economy, the risk-free rate of interest is 5% and the Markowitz frontier is given by the equation =28([])27([])+0.6 On a graph of
In a particular economy, the risk-free rate of interest is 5% and the Markowitz frontier is given by the equation =28([])27([])+0.6 On a graph of expected return (vertical axis) against risk (horizontal axis), what is (approximately) the slope of the line joining the risk-free asset and the market portfolio?
a. 0.418 b. 0.265 c. 1.012 d. 0.847
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International Financial Management
Authors: Jeff Madura, Roland Fox
4th Edition
147372550X, 9781473725508
