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Suppose that you are assessing the investment opportunity set for combinations of a riskless asset with a return of 3% and a risky asset. The
Suppose that you are assessing the investment opportunity set for combinations of a riskless asset with a return of 3% and a risky asset. The risky asset has an expected return of 15% and return volatility of 16%. What are the intercept and the slope of the capital allocation line that represents the investment opportunities? A. 0.03 and 0.50 B. 0.04 and 0.25 C. 0.05 and 0.25 O D.0.03 and 0.75
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